Jonas Inc. is trying to decide whether to lease or purchase a piece of equipment needed for the next ten years. The equipment would cost $49,000 to purchase, and maintenance costs would be $5,600 per year. After ten years, Jonas estimates it could sell the equipment for $27,000. If Jonas leases the equipment, it would pay $20,000 each year, which would include all maintenance costs. Refer the Table 2 and Table 4.

If the hurdle rate for Jonas is 12%, Jonas should (Round your PV factors to 4 decimal places. Do not round intermediate calculations. Round your final answer to the nearest hundred.)

	lease the equipment, as net present value of cost is about $37,400 less.
	buy the equipment, as net present value of cost is about $41,100 less.
	buy the equipment, as net present value of cost is about $49,000 less.
	lease the equipment, as net present value of cost is about $41,100 less.