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Hey i am sorry but i am totally and utterly confused on this wuestion. please help Kiddy Toy Corporation needs to acquire the use of

Hey i am sorry but i am totally and utterly confused on this wuestion. please help
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Kiddy Toy Corporation needs to acquire the use of a machine to be used in its manufacturing process. The machine needed is manufactured by Lolie Corp. The machine can be used for 12 years and then sold for $17,000 at the end of its useful life. Lollie has presented Kiddy with the following options. (FV of 5.1. PV Of S. EVA Of S1, PVA OLS1, EVAD of S1 and PVAD of S1) (Use appropriate factor(s) from the tables provided.) Buy machine The machine could be purchased for $167.000 in cash All insurance costs, which approximate $12,000 per year, would be paid by Kiddy 2. Lease machine. The machine could be leased for a 12-year period for an annual lease payment of $32,000 with the first payment due immediately Al insurance costs will be paid for by the Lollie Corp. and the machine will revert back to Lole at the end of the 12 year period Required: Assuming that a 10% interest rate properly reflects the time value of money in this situation and that all maintenance and insurance costs are paid at the end of each year, determine which option Kiddy should choose Ignore income tax considerations (Negotive omounts should be indicated by a minus sign. Round your final answers to nearest whole dollor amount.) Answer is complete but not entirely correct. Buy option Leplion y should choose PV 5 267,376 5 2573763 Lease

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