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G The Hilton college needs a new margarita machine. We don't know if we should buy or lease. Below is the info on the two
G The Hilton college needs a new margarita machine. We don't know if we should buy or lease. Below is the info on the two options. The machine would have a 3 year life. 15,000 Buy Cost of machine $ Annual lease $ Salvage value in three years $ Annual labor costs $ Annual supplies $ Annual utilities $ Annual interest $ Annual repairs $ 2,000 25,000 3,000 2,000 1,000 1,500 Lease $ $ 7,000 $ $ 25,000 $ 3,000 $ 2,000 $ $ 1. Which costs are irrelevant? 2. Which alternative do you recommend and why
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