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Heidi Inc. is considering whether to lease or purchase a piece of equipment. The total cost to lease the equipment will be $131,000 over its
Heidi Inc. is considering whether to lease or purchase a piece of equipment. The total cost to lease the equipment will be $131,000 over its estimated life, while the total cost to buy the equipment will be $83,000 over its estimated life. At Heidi's required rate of return, the net present value of the cost of leasing the equipment is $73,400 and the net present value of the cost of buying the equipment is $68,000. Based on financial factors, Heidi should: Multiple Choice lease the equipment, saving $48.000 over buying buy the equipment, saving $48,000 over leasing buy the equipment, Saving $5.400 over leasing, lease the equipment, saving $5,400 over buying
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