Good Day,

Air Canada needs an additional plane for 5 years. It can buy the plane for $360,000 and then sell it after the 5 years for an estimated amount of $140,000. Alternatively, it can lease the plane for $5,600 per month payable at the beginning of each month. Which alternative should Air Canada choose? What is the financial advantage of the preferred alternative? Assume interest is 7.5% compounded monthly.Any help is needed and much appreciated!