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20-1 LEASING Hancock Construction needs a piece of equipment that can be leased or pur- chased. The firm conducts a purchase-versus-leasing analysis and determines that

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20-1 LEASING Hancock Construction needs a piece of equipment that can be leased or pur- chased. The firm conducts a purchase-versus-leasing analysis and determines that the PV cost of owning is -$25,750 and the PV cost of leasing is -$23,550. What is the net advan- tage to leasing (NAL)? Should the firm purchase the equipment or lease it? Explain

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