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From: Javier Lease or buy Subject: We are trying to decide whether to lease or buy a piece of manufacturing equipment. The purchase cost is
From: Javier Lease or buy Subject: We are trying to decide whether to lease or buy a piece of manufacturing equipment. The purchase cost is $100,000. The lease cost is $10,000 per year. We expect to keep the equipment for only 2 years. If we purchase it, we should be able to sell it for $80,000. Our cost of capital is 5%. Which approach is the least expensive? Purchasing the equipment Leasing the equipment Both options are the same Need more information
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