Determine the number of days per year

Reference no: EM131800088

A construction company can purchase a piece of equipment for $50,000 and spend $100 per day in operating costs. The equipment will have a 5-year life with no salvage value. Alternatively, the company can lease the equipment for $400 per day. Determine the number of days per year the company must the equipment to justify its purchase require if the interest rate is 8% per year.

Reference no: EM131800088

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