Which alternative would be better if the equipment

Reference no: EM13563759

A firm is deciding wheter to buy or rent equipment. How many days would they need to use the equipment each year to justify purchasing the equipment? To purchase equipmet/ Buy at $60,000, Operation and maintanence is $120/day, life is 5 yrs and salvage value is $5000. To Rent: is $400/ day, life is 5 yrs. Use a interest rate of 5%. Which alternative would be better if the equipment is operated 25 days per year?

Reference no: EM13563759

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