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In a construction project, you wish to evaluate whether to lease or buy equipment that would cost you $5,000 to buy. He leasing would cost

In a construction project, you wish to evaluate whether to lease or buy equipment that would cost you $5,000 to buy. He leasing would cost $200 per month and a down payment of $400, and you need the equipment for 8 months with a potential to earn 5% if you are not buying the equipment. At the end of the 8-month period, the buyout of the equipment is about $1,200. Would you lease or buy the equipment?



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