The Capitalpoor Company is considering purchasing a business machine for $110,000. An alternative is to rent it for $30,000 at the beginning of each year. The rental would include all repairs and service. If the machine is purchased, a comparable repair and service contract can be obtained for $1,000 per year The salesperson of the business machine firm has indicated that the expected useful service life of this machine is five vears. with zero market value at the end of anv vear. but the comnanv is not sure how lona the machine will actuallv be The AW of leasing is thousand. (Round to one decimal place.) 79 8788 69 97 36 84 41 03 70 42 17 5-4 3 3 2 2 2 1 1 1 10000000000000000000 5171 8 130275 7 2 43211 10000000000000000000 CFA 41377|9 279276 5 Fi VP-9 7 5 2 840 791 0123345556|6 7 7 7 888889 3 1357 1234579 7 1 5 ay W 753617 120771 FF-9 8 9 4 37 82 99 17 36-58 81 06 34 64 97 32 71 14 aivF 0-1 2 3 4 5 6 7 8 9 N-1 2 3 4 5 6 7 8 9 11 (%) Problem 13-11 (algorithmic) EQuestion Help years, with zero market value at the end of any year, but the company is not sure how long the machine will actually be needed. If the machine is rented, the company can cancel the lease at the end of any year. Assuming an income tax rate of 25%, a straight-line depreciation charge of $22,000 for each year the machine is kept, and an after-tax MARR of 9%, prepare an appropriate analysis to help the firm decide whether it is more desirable to purchase or rent. Assume that the machine will be used for 5 years The AW of leasing is $ thousand. (Round to one decimal place.)