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The Veterans Home Facility is in need of a new x - ray machine. A new machine costs $ 1 , 5 0 0 ,

The Veterans Home Facility is in need of a new x-ray machine. A new machine costs $1,500,000 and has an annual maintenance cost of $27,500. Its useful life is 10 years and the clinic would finance the machine for its entire lifespan. Leasing the same x-ray machine would cost the clinic $225,000 per year including maintenance. Assume an interest rate of 8.5%.In Excel, set up the problem, identify the knowns, and answer the following: What should the facility do, lease or buy the new machine? What would the answer be if the interest rate was 5.5%? In addition, provide an interpretation.

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Lease vs Buy an XRay Machine Veterans Home Facility Knowns XRay Machine Cost 1500000 Annual Maintenance Cost 27500 Useful Life 10 years Lease Payment ... blur-text-image

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