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ata Food Eimporium decides to obtain a new refrigerator to store its meat and produce. The efrigrtator has a 15-year useful life and can be

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ata Food Eimporium decides to obtain a new refrigerator to store its meat and produce. The efrigrtator has a 15-year useful life and can be sold for $15,000 at the end of its useful he hata has two options: 1. Purchase the Refrigerator: Purchase the refrigerator in cash for $100,000. Fata wrall have to pay all maintenance/insurance costs, which would be $3,000 per year. 2. Lease the Refrigerator: Lease the refrigerator for a 15-year period. Annual lease payments amount to $15,000 with the first payment beginning at the end of the year. The seller will pay maintenance and insurance costs, and Fata will return the refrigerator to the seller after 15 years. Assuming that maintenance and insurance costs are paid at year-end and an interest rate of 10% compounded annually, which option should Fata choose? use the following present value factors only: - Present value factor of an ordinary annuity rr=10$,n=15=7.60608 - Present value factor of a single amount r=106,n=15=0.23939 - Present value factor of an annuity due r=10kn15=8.36669

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