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Question 35 (3 points) Harold Inc. is considering whether to lease or purchase a piece of equipment. The total cost to lease the equipment will
Question 35 (3 points) Harold Inc. is considering whether to lease or purchase a piece of equipment. The total cost to lease the equipment will be $130,000 over its estimated life, while the total cost to buy the equipment will be $79,000 over its estimated life. At Harold's required rate of return, the net present value of the cost of leasing the equipment is $79,300 and the net present value of the cost of buying the equipment is $73,000. Based on financial factors, Harold should: UA) buy the equipment, saving $51,000 over leasing. O B ) buy the equipment, saving $6300 over leasing. OC) lease the equipment, saving $6300 over buying. O D ) lease the equipment, saving $51,000 over buying
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