The golf course superintendent of the Waverly Golf Course (owned by the City of Lansing) is considering leasing or purchasing a fairway mower. Relevant information is as follows: Purchase Option Purchase cost =$28,000 Estimated salvage value =$6,000 (at end of useful life) Expected useful life =5 years Lease Option Initial lease payment at signing of lease =$7,000 Future lease payments (due at the end of years 1 to 4 ) =$5,000 The relevant discount rate is 10 percent. Required: Based on the above information, determine whether the Waverly Golf Course should lease or buy