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Ayayai has been selling auto parts to the general public for over 70 years. It has built a reputation for outstanding customer service, becoming the

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Ayayai has been selling auto parts to the general public for over 70 years. It has built a reputation for outstanding customer service, becoming the third largest auto parts retailer in the Southwest. Hoping to expand its sales to other regions, managers have decided to establish an online retail presence. Dan Jennings, CIO of Ayayai, is charged with the task of evaluating how the company should implement this strategy One of the first things Dan needs to determine is how to acquire the network servers the company will need. He knows the vendor he wants to use, but he is uncertain whether he should buy or lease the servers. If he buys the servers for $4,179,600. Ayayai will incur annual maintenance costs of $48,600 over their five-year life. If he leases the servers for five years, Ayayai will make lease payments of $1,166,400 in each of the first three years and of S972,000 in each of the last two years. Annual maintenance costs under the lease will be $77,760 Click here to view the factor table. (a 1) Your answer is partially correct. Calculate the present value of the purchase and lease option assuming a 12% discount rate. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answers to O decimal place, es, 58,971. If the amount is negative then enter with a negative sign preceding the number, eg.-5,125 or parenthesis, e.g. (5,1251.) Purchase option Lease Option -4,354,793 Present value $

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