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Medic-Tech, Inc. is a supplier of medical equipment. It recently introduced a new line of equipment that may revolutionize the medical profession. Because of the

Medic-Tech, Inc. is a supplier of medical equipment. It recently introduced a new line of equipment that may revolutionize the medical profession. Because of the new technology, potential users of the equipment are reluctant to purchase the equipment, but they are willing to enter into a lease arrangement if they can classify the lease as an operating lease. The new equipment will replace equipment that Medic-Tech has been selling in the past. Leasing the new equipment will result in a loss of an estimated 25% in equipment sales

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