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k to see additional instructions the manager of a not-for-profit bakery, you are trying to decide whether to lease or buy kitchen equipment. The lease

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k to see additional instructions the manager of a not-for-profit bakery, you are trying to decide whether to lease or buy kitchen equipment. The lease would requt beginning of each month for five years; maintenance services would be free of charge. Alternatively, you could buy the equlpment for timated maintenance costs would be $1,000 paid at the end of each year, and after five years you could sell the equipment for an estimated $2,000. T re payments of S4 $20,000; kery uses a discount rate of 4%. ll in the following blanks: ote: Write only POSITIVE numbers e.g. even if Excel gives you -253 or (253, write 253. Also, round your numbers to TWO decimal places e.g. 253.12) Present value of the lease's cost is: $ B) Present value of the buy option is: C) Which option should you choose? D) Would your answer to part (C) change if the discount rate is 5%? Write 1 If "Lease", or 2 if "Buy] Write 1 if Yes, or 2 if No) k to see additional instructions the manager of a not-for-profit bakery, you are trying to decide whether to lease or buy kitchen equipment. The lease would requt beginning of each month for five years; maintenance services would be free of charge. Alternatively, you could buy the equlpment for timated maintenance costs would be $1,000 paid at the end of each year, and after five years you could sell the equipment for an estimated $2,000. T re payments of S4 $20,000; kery uses a discount rate of 4%. ll in the following blanks: ote: Write only POSITIVE numbers e.g. even if Excel gives you -253 or (253, write 253. Also, round your numbers to TWO decimal places e.g. 253.12) Present value of the lease's cost is: $ B) Present value of the buy option is: C) Which option should you choose? D) Would your answer to part (C) change if the discount rate is 5%? Write 1 If "Lease", or 2 if "Buy] Write 1 if Yes, or 2 if No)

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