Problem:
The company you work for is expanding and will need to obtain additional production equipment. Your manager is looking for a cost analysis of whether the company should buy or lease equipment. See attachment for data.
1) Calculate the PV for each option (below table)
2) List out three positive aspects of the option you chose and a rational for why they are positive.
3) List out three negative aspects of the option you chose and a rational for why they are negative.
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Lease
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Buy
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Term (In Years)
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10
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Cost
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$ 100,000.00
|
|
Monthly Payment
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$ 1.000.00
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Interest
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8%
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|
Interest
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8%
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|
|
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Payment Due at Beginning of Month
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|
|
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Deposit
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$ 10.000.00
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