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Jonas inc is trying to decide whether to lease or purchase

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Jonas Inc. is trying to decide whether to lease or purchase a piece of equipment needed for the next ten years. The equipment would cost $50,000 to purchase, and maintenance costs would be $5,500 per year. After ten years, Jonas estimates it could sell the equipment for $28,000. If Jonas leases the equipment, it would pay $12,000 each year, which would include all maintenance costs. If the hurdle rate for Jonas is 7%, Jonas should?

Reference no: EM13578015

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