The company you work for needs to rent bulldozer for job

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The company you work for needs to rent a bulldozer for a job. The company has made a non-refundable deposit of the first month’s rent (equal to $1,000) on a 6-month lease for a bulldozer. The next day, you find a different bulldozer that also meets the requirements for the job, but only costs $900/month for a 6-month lease. Assuming the plan is to use the bulldozer for 6 months, and there are no additional costs associated with a switch in equipment, should you recommend that the company switch to the new bulldozer? What if the bulldozer is needed for 1 year, with both bulldozers having a 1-year lease term? The annual interest rate is 12%.

Reference no: EM13869337

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