Chapter L1-Capital Bdgeting In Class Exercise 11-4 (LO 5) Chiwen, Ine. is corsidering whether to replace an office copy machine with a nevr model. The manager istrving to decide whetherto buy the machine outright r !ease it from a cop er company. He has generated the following information about the two options. Chiwen's discount ratc is 12 porccnt. Should the cornpany lease or buy the copier? Purchase Option Lease Option Purchase price Annual operating costs (paper, toncr, maintenancc. ctc.) Useful lif Salvage value $ 25,000Annual lease payment 2000 includs all supplies and S 7,000 maintennce) years Centract length 5,000 5 ycars