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Setting up a railway line connecting two cities

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You have been assigned to manage a project that deals with setting up a railway line connecting two cities. The project is complex with a lot of contracting involved. You and experts in your organization are evaluating if the rail line alignment machinery should be purchased outright or if it would be better to lease. The cost of leasing the equipment is $1200/ per day while the cost of an outright purchase is $96000 and a daily cost of $200.The duration of laying out the railway lines is scheduled to be an activity duration of 150 days. Should you purchase the machinery or be leased - which option would be more economical?

Reference no: EM131714938

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