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Frank Inc. is trying to decide whether to lease or purchase a plece of equipment needed for the next ten years. The equipment would cost

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Frank Inc. is trying to decide whether to lease or purchase a plece of equipment needed for the next ten years. The equipment would cost $49,000 to purchase, and maintenance costs would be $5,800 per year. After ten years, Frank estimates it could sell the equipment for $25,000. If Frank leased the equipment, it would pay a set annual fee that would include all maintenance costs. Frank has determined after a net present value analysis that at its hurdle rate of 12%, it would be better off by $28,000 if it buys the equipment. What would the approximate annual cost be if Frank were to lease the equipment? (Future Value of $1. Present Value of $1. Future Value Annuity of $1. Present Value Annuity of $1.) (Use appropriate factor from the PV tables. Do not round intermediate calculations. Round your final answer to the nearest hundred.) Multiple Choice $18.000 $13,000 $19,250 $15.000 Frank Inc. is trying to decide whether to lease or purchase a piece of equipment needed for the next ten years. The equipment would cost $49,000 to purchase, and maintenance costs would be $5,800 per year. After ten years, Frank estimates it could sell the equipment for $25,000. i Frank leased the equipment, it would pay a set annual fee that would include all maintenance costs. Frank has determined after a net present value analysis that at its hurdle rate of 12%, it would be better off by $28,000 if it buys the equipment. What would the approximate annual cost be if Frank were to lease the equipment? (Euture Value of $1. Present Value of $1. Future Value Annuity of $1. Present Value Annuity of $1.) (Use appropriate factor from the PV tables. Do not round intermediate calculations. Round your final answer to the nearest hundred.)

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