Reynolds Imaging needs a piece of diagnostic equipment that costs $200 thousand. Reynolds can
either lease the equipment or borrow $200 thousand from a local bank and buy the equipment.
Reynolds's tax rate is 30 percent, and the equipment depreciation would be $100 thousand per year.
If the company leased the asset on a two-year lease, the payment would be $110 thousand at the
beginning of each year. If Reynolds borrowed and bought, the bank would charge 10 percent
interest on the loan. Should Reynolds buy or lease the equipment? please show equations and calculations used to solve for excel or however you answered.