Cheyenne Excavating Inc. is purchasing a bulldozer. The equipment has a price of $100,700. The manufacturer has offered a payment plan that would allow Cheyenne to make 6 equal annual payments of $22,448.02, with the first payment due one year after the purchase.
Cheyenne could borrow $100,700 from its bank to finance the purchase at an annual rate of 8%.
Should Cheyenne borrow from the bank or use the manufacturer's payment plan to pay for the equipment? (Round answer to 0 decimal places, e.g. 7%.)