Foster Inc. is trying to decide whether to lease or purchase a piece of equipment needed for the next ten years. The equipment would cost $53,000 to purchase, and maintenance costs would be $5,200 per year. After ten years, Foster estimates it could sell the equipment for $25,000. If Foster leases the equipment, it would pay $15,000 each year, which would include all maintenance costs. (Future Value of $1, Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.)

If the hurdle rate for Foster is 12%, Foster should (Round your PV factors to 4 decimal places. Do not round intermediate calculations. Round your final answer to the nearest hundred.)

A) buy the equipment, as net present value of cost is about $10,400 less.

B) lease the equipment, as net present value of cost is about $10,400 less.

C) lease the equipment, as net present value of cost is about $6,700 less.

D) buy the equipment, as net present value of cost is about $53,000 less.