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Sunny Health and Fitness has a piece of machinery they are no longer using. The Company is considering leasing or selling the machine to a
Sunny Health and Fitness has a piece of machinery they are no longer using. The Company is considering leasing or selling the machine to a new gym. A new gym has agreed to lease the machinery for a total of 4 years. We know the following:
Original Cost of Equipment: $150,000
Annual Lease Revenue: $30,000
Annual Maintenance Expenses: $5,000
Sales Price of reselling it: $110,000
Commission to resell: 5%
Which alternative should the company quantitatively choose?
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