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help w/ all req pls 40 York Incorporated is trying to decide whether to lease or purchase a piece of equipment needed for the next

help w/ all req pls

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40

York Incorporated is trying to decide whether to lease or purchase a piece of equipment needed for the next 10 years. The equipment vould cost $91,500 to purchase, and maintenance costs would be $11,500 per year. After 10 years, York estimates it could sell the equipment for $41,500. If York leases the equipment, it would pay $25,500 each year, which would include all maintenance costs. York's cost of capital is 10%. (Future Value of $1, Present Value of $1. Future Value Annuity of $1, Present Value Annuity of $1 ) Note: Use appropriate factor from the PV tables. Required: a. What is the net present value of the cost of purchasing the equipment? b. What is the net present value of the cost of leasing the equipment? c. Based on financial factors, should York purchase or lease the equipment? Complete this question by entering your answers in the tabs below. What is the net present value of the cost of purchasing the equipment? Note: Round your final answer to the nearest dollar amount

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