Better than OK Co. needs a new building. The building can be purchased today for $94,000. After 9 years the company expects to sell the building for $8,950.

Better than OK Co. can also lease the building for annual payments of $14,500 to be paid at the beginning of every year.

The company requires a rate of return on investment (hurdle rate) of 12% compounded annually.

Required:

Should the company buy or lease the building?

Copy this table to use in your answer.

	Lease	Purchase
End / Beg	write here	write here
P/Y
C/Y
N
I/Y
PV
PMT
FV