CLASS EXERCISE agement of The Alexandrov Company decided to acquire the use of The machine it needs is The man a machine to be used in its manufacturing process. manufactu red only by Chang, Incorporated. The machine can be used for ears and then sold for $10,000 at the end of its useful life. Chang's d Alexandrov with the following acquisition management has presente options: Le case: The machine could be leased for a ten-year period for an annual lease se payment of $25,000, with the first payment due on the date that the ent is signed. All maintenance and insurance costs for the machine, agreem h are expected to be about $5,000 per year, would be paid by Chang, and the machine would be returned to Chang at the end of the lease term. Purchase: The machine could be purchased for $130,000 in cash. Assuming that (i) Alexandrov and Chang will agree on a transaction on November 30, 2010, and (ii) the current interest rate for Alexandrov's long- term borrowing is 12%, which of the two options would be the most economically attractive to Alexandrov? Prepare a formal schedule to support your decision