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Heidi Incorporated is considering whether to lease or purchase a piece of equipment. The total cost to lease the equipment will be $138,000 over its

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Heidi Incorporated is considering whether to lease or purchase a piece of equipment. The total cost to lease the equipment will be $138,000 over its estimated life, while the total cost to buy the equipment will be $84,000 over its estimated life. At Heidi's required rate of return, the net present value of the cost of leasing the equipment is $75,500 and the net present value of the cost of buying the equipment is $70,000. Based on financial factors, Heidi should: Multiple Choice lease the equipment, saving $54,000 over buying. buy the equipment, saving $5,500 over leasing. buy the equipment, saving $54,000 over leasing. lease the equipment, saving $5,500 over buying

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