Proctoring Enabled: Exam 3 Ch 0.00 32 Emerson Corp. is trying to decide whether to lease or purchase a piece of equipment needed for the next five years. The equipmen would cost $500.000 to purchase, and maintenance costs would be $20,500 per year. After five years, Emerson estimates it could selli the equipment for $101.800. If Emerson leases the equipment, it would pay $150,000 each year, which would include all maintenance costs. Emerson's hurdle rate is 13%. (Euture Value of $1. Present Value of 51, Future Value Annuity of 51. Present Value Annuity of $1.) (Use appropriate factor from the PV tables.) a. What is the net present value of the cost of purchasing the equipment? (Round your final answer to the nearest dollar amount.) Ints 30224 Net Present Value b. What is the net present value of the cost of leasing the equipment? (Round your final answer to the nearest dollar amount.) Not Present Value c. Based on financial factors, should Emerson purchase or lease the equipment? O Purchase Lease