Yibrin Corp. is considering wether to lease or buy equipment from Le Leasing Co with a useful life of 10 years. If the company were to purchase the equipment, it would cost $30,000 up front. However, if the company were to lease the equipment, the lease payment would be $4,500 annually, with the first payment due immediately.

a. considering a 10% interest rate, which alternative, lease or buy, would you recommend?

b. As the CFO, explain your findings and recommendations. Include the total interest Yibrin would have to pay under the leasing scheme. What considerations would you suggest to the CEO?

Please show how you find your answer!!/ scratch work labeled!