Would be more cost- efficient to lease or buy

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One of the many applications of the PVC analysis and annualized costing is their use in making a so-called lease or buy decision. Suppose that the purchase price of a heavy-duty printer is $19,000, with an annual maintenance cost if $200. And suppose the same printer can be leased for an annual cost of 2,000, with an annual maintenance cost of $300. Consider a 15 year plan term for the estimation and a 10 percent annual discount rate

Problem 1: Would it be more cost- efficient to lease or buy? Explain explicitly and assumption

Reference no: EM132635922

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