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 $$53,000$ to purchase, and maintenance costs would be $$5,200$ per year. After $10$ 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. If Foster's cost of capital is $12\%,$ Foster should: $($Future Value of $$1,$ Present Value of $$1,$ Future Value Annuity of $$1,$ Present Value Annuity of $ $)$

Note: Use the appropriate factors from the PV tables.

Multiple Choice

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

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

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

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