Arlandria inc has bought a new server and is having to

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Arlandria, Inc. has bought a new server and is having to decide what to do with the old one. The cost of the old server was originally $50,000 and has been depreciated by $40,000. The company has received two offers that it must consider. One offer was made to sell the equipment outright for $17,500 less a 5% sales commission. The other offer was to lease the equipment to a customer for $7,000/year for the next five years but the company will be required to provide maintenance and insurance totaling $3,000 per year. What offer should Arlandria, Inc. accept?

Reference no: EM13582876

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