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Randall Corporation is trying to decide whether to lease or purchase a plece of equipment needed for the next 5 years. The equipment would cost

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Randall Corporation is trying to decide whether to lease or purchase a plece of equipment needed for the next 5 years. The equipment would cost 5125,000 to purchase, and maintenance costs would be $35,000 per year. After 5 years, Rondall estimotes it could sell the equipment for 555,000 . If Randall leases the equipment, it would pay $55,000 each year, which would include all mainterance costs, If Randal's cost of capltal is 12th, Randall should: (Future Value of 51. Present Value of 51. Euture Value Annuity of S1. Present Value Annulty of 51] Note: Use the appropriate factor from the PV tables. Muitigle choice leave the equipment as the net present value of the coit is about $22.000 less. buy the equipment, as the net present value of the cost is about $22.000 less. Jease the equpment, as the net present value of the cost is about $55,000 less. buy the equipment, as the net present value of the cost is about $55,000 less TABLE 11.1A Future Value of \$1 TABLE 11.2A Present Value of $1 TABLE 11.3A Future Value of an Annuity of \$1 TABLE 11.4A Present Value of Annuity of $1

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