Would you lease or buy the equipment

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Reference no: EM132152429

In a construction project, you wish to evaluate whether to lease or buy equipment that would cost you $5000 to buy. the leasing would cost $200 per month and a down payment of $400, and you need the equipment for 8 months with a potential to earn 5 percent if you are not buying the equipment. at the end of the 8-month period, the buyout of the equipment is about $1,200. Would you lease or buy the equipment?

Reference no: EM132152429

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