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You are considering buying an asset that has a 3-year life and costs $15,000. As an alternative to buying the asset, you can lease it
You are considering buying an asset that has a 3-year life and costs $15,000. As an alternative to buying the asset, you can lease it for four payments of $4,000. The first payment is due on the day you sign the lease, and the next three payments are due at the end of each following year. If you can borrow from your bank at 10%, should you buy or lease? Please show full workings on an excel sheet.
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