Richter Builders, Inc., is considering the use of some equipment for four years. The manufacturer of the equipment has offered to either lease or sell the equipment to Richter. Lease payments would be $90,000 per year, due at the end of each year. If purchased, the equipment would cost $300,000 and Richter would use straight-line depreciation with a three-year class life and recovery period. Estimated salvage is zero. The tax rate is 50 percent. Annual CFBT under the buy plan is $150,000. Annual operating costs are the same for both plans. Finally, the discount rate is 10 percent for the buy plan and the required rate of return on borrowing is 8 percent. Determine whether the asset should be leased or bought. Under either alternative, old equipment worth $18,000 will be sold.