Two days ago, one of Morees Catering Inc.'s delivery vans stopped working. To meet demands, the company needs a new van. The company is deciding to either lease or purchase a new van. The company can lease the van from Leaselt Ltd. under a 6 year contract. The lease cost would be $11,800 per year. On the other hand, Morees can purchase a van from BuyIt Ltd. for $53,800. Assume Morees has a required rate of return of 12%. D.

Use the NPV method to determine which alternative the company should accept.