You are considering whether to buy or lease a machine for your heavy engineering plant. The Finance Department provided the following information:
- If you buy, the cost is $ 29,000 and the one-time cost of procurement and integrating in your company is $1000.
- If you lease, you have to pay $ 10,000 as down-payment and $ 5,000 per month license fee.
- What is the breakeven duration after which you should buy (instead of leasing) the product?