Foster Incorporated is trying to decide whether to lease or purchase a piece of equipment needed for the next $10$ years. The equipment would cost $$51,000$ to purchase, and maintenance costs would be $$5,800$ per year. After $10$ years, Foster estimates it could sell the equipment for $$25,000.$ If Fc leases the equipment, it would pay $$14,000$ each year, which would include all maintenance costs. If Foster's cost of capital is $10\%,$ Foster should: $($ Future Value of $$1,$ Present Value of $$1,$ Future Value Annuity of $$1,$ Present Value Annuity of $$1)$

Note: Use the appropriate factors from the PV tables.

Multiple Choice

lease the equipment, as the net present value of the cost is about $$5,300$ less.

buy the equipment, as the net present value of the cost is about $$51,000$ less.

lease the equipment, as the net present value of the cost is about $$9,000$ less.

buy the equipment, as the net present value of the cost is about $$9,000$ less.