Explain subsequent alternatives on some real estate

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A company has the subsequent alternatives on some real estate that it needs for its new plant. It can lease the facility for $10,000 a month for 15 years or it can buy the facility now for $800,000. The company's weighted average cost of capital is 12% as well as payments are made at the end of each month. Which is cheaper for the company to buy or lease real estate? Display your computations

Reference no: EM13107552

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