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The American-German hospital is looking to replace an X-Ray machine, they have received two proposals from Phillips. The details of the proposals are as follow

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The American-German hospital is looking to replace an X-Ray machine, they have received two proposals from Phillips. The details of the proposals are as follow S: a. Lease Lease the machine at an annual rental of 50,000 AED. The five payments are to be paid at the beginning of the year. The real cost will include all maintenance on the machine. The machine will be returned in 5 years. b. Buy the machine The cost of the new machine is 200,000 AED. The hospital will be responsible for the maintenance of the X-Ray machine, which is estimated at 18.000 AED per year. The machine will last five years and will have a salvage value of 75,000 AED Which option should be selected if the hospital uses 8% as a rate or retum? A AED - 125,687 PW equation for leasing PW equation for Buying PW value for lease PW value for Buying Chosen Option? 6. AED-215,805 C.200000 18000 (PIA, 8%, 5) + 75000 (PF.8%, 5) D. Buy E-50,000 + A (PIA, 8%,4) 5. -50,000 - A (PIA, 8% 4) G-200000 - 18000 (PIA 8%, 5) + 75000 (PIF.8%,5) HAED-220,823.60 LAED-307,850 1 Lease

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