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One-time cost of procurement and integrating

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Reference no: EM131714939

You are considering whether to buy or lease a machine for your heavy engineering plant. The Finance Department provided the following information:

  • If you buy, the cost is $ 29,000 and the one-time cost of procurement and integrating in your company is $1000.
  • If you lease, you have to pay $ 10,000 as down-payment and $ 5,000 per month license fee.
  • What is the breakeven duration after which you should buy (instead of leasing) the product?

Reference no: EM131714939

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