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Heidi incorporated is considering whether to lease or purchase a piece of equipment. The total cost to lease the equipment wili be ( $ 124,000
Heidi incorporated is considering whether to lease or purchase a piece of equipment. The total cost to lease the equipment wili be \\( \\$ 124,000 \\) over its estimated life, while the total cost to buy the equipment will be \\( \\$ 79,000 \\) over its estimated life. At Heidi/s required rate of return, the net present value of the cost of leasing the equipment is \\( \\$ 75,000 \\) and the net present value of the cost of buying the equipment is \\( \\$ 69,000 \\). Based on financial factors, Heid should: Muliplio Choice buy the equipment, saving \\( \\$ 45,000 \\) over leosing. lease the equipment, seving \\( \\$ 45,000 \\) over buying lease the equipment, saving \\( \\$ 6,000 \\) over buying. buy the equipment, saving \\( \\$ 6,000 \\) over leasing
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