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2 (5 points each for a, b, c & d) Jennings Company faces the following two options [ Buy or Lease ] for the manufacturing equipment. In order to exercise the better option, the engineering manager in the Jennings use 4 different methods to make decision under ROI of 8%. Buy 10,000 Lease 0 Down payment Annual Mortgage Annual lease Salvage [after 4 year 6,000 4,000 0 25,000 a) By using AW method, choose the better option. b) By using PW method, choose the better option. c) By using FW method, choose the better option.
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