York Inc. is trying to decide whether to lease or purchase a piece of equipment needed for the next ten years. The equipment would cost $$99,000$ to purchase, and maintenance costs would be $$19,000$ per year. After ten years, York estimates it could sell the equipment for $$49,000.$ If York leases the equipment, it would pay $$33,000$ each year, which would include all maintenance costs. The hurdle rate for York is $10\%.($Future Value of $$1,$ Present Value of $$1,$ Future Value Annuity of $$1,$ Present Value Annuity of $$1.)($Use appropriate factor from the PV tables.$)$

a$.$ What is the net present value of the cost of purchasing the equipment? $($Round your final answer to the nearest dollar amount.$)$

b$.$ What is the net present value of the cost of leasing the equipment? $($Round your final answer to the nearest dollar amount.$)$

c$.$ Based on financial factors, should York purchase or lease the equipment?

multiple choice

Lease

Purchase