You need a particular piece of equipment for your production process. An equipment-leasing company has offered to lease the equipment to you for

$ 10 comma 500$10,500

per year if you sign a guaranteed

55-year

lease (the lease is paid at the end of each year). The company would also maintain the equipment for you as part of the lease.Alternatively, you could buy and maintain the equipment yourself. The cash flows from doing so are listed below (the equipment has an economic life of

55

years). If your discount rate is

6.7 %6.7%,

what should you do?

Year 0	Year 1	Year 2	Year 3	Year 4	Year 5
negative $ 40 comma 800$40,800	negative $ 2 comma 000$2,000	negative $ 2 comma 000$2,000	negative $ 2 comma 000$2,000	negative $ 2 comma 000$2,000	negative $ 2 comma 000$2,000

The net present value of the leasing alternative is

$nothing.

(Round to the nearest dollar.)