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Assume that a company is choosing between two alternatives-lease a plece of equipment for five years or buy a piece of equipment and sell it

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Assume that a company is choosing between two alternatives-lease a plece of equipment for five years or buy a piece of equipment and sell it in five years. The costs associated with the two altematives are summarized as follows. Click here to view Exhibit.79.1 and Exh.bit 78-2, to determine the appropriate discount factor(5) using the tables provided. If the company chooses the lease optlon, it will have to pay an immediate deposit of $25,000 to cover any future damages to the equipment. The deposit is refundable at the end of the lease term. The annual lease payments are made at the end of each year, Based on a net present value analysis With a discount rate of 23%, what is the financlal advantage (disadvantage) of buylng the equipment rather than leasing it? Mudiple Cnoice S. 4,229) 5,6,9091

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