Question $2(0\mathrm{.}5$ points$)$

You are considering buying an asset that has a $3-$year life and costs $$15,000.$ As an

alternative to buying the asset, you can lease it for four payments of $$4,000.$ The

first payment is due on the day you sign the lease, and the next three payments are

due at the end of each following year.

If you can borrow from your bank at $10\%,$ should you buy or lease?

Should neither buy nor lease

Indifferent

Lease

Buy