An industrial imaging system can be purchased for $95,000. At the end of five years, this...
Homework Answers
i = 12%
Purchase option:
NPV = -95000 + 40000/(1 + 12%)5 = - $ 72303
Lease option:
NPV = -18000 - 18000/(1 + 12%) - .... - 18000/1.124 = - $ 72672.3
Therefore, it is cheaper to purchase. (higher NPV/lower cost)
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industrial imaging system can be purchased for $95,000. At the end
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