Artman Construction Company needs a special type of equipment, which costs $4,000. Artman can lease this machinery for four years and the payments will be $1,150 per year payable at the beginning of each year.

Maintenance cost will be $100 per year and will be borne by the lessor in the beginning of each year.

Artman could also borrow $4000 from a bank at the interest rate of 8% per year. Interest will be paid each year and the principal at the end of 4th. Year. Artman will pay the maintenance cost in the beginning of each year. Artman will use straight line depreciation of $1,000 per year. The equipment has no salvage value and Artmans tax rate is 40%. Should Artman buy or lease this equipment?