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Master Manufacturing is considering the purchase of a machine for $500,000. Alternatively, the machine could be leased on a five-year contract for $125,000 per year with lease payments made at the beg...

Master Manufacturing is considering the purchase of a machine for $500,000. Alternatively, the machine could be leased on a five-year contract for $125,000 per year with lease payments made at the beginning of each year. If the company purchases the machine, maintenance costs will be $25,000 per year and the salvage value of the machine after five years is expected to be $70,000.
Answer the below questions Using an interest rate of 10% per year. Match the closest correct answers for the below questions:

      -       A.       B.       C.       D.       E.       F.       G.   

Present Worth of Buy

      -       A.       B.       C.       D.       E.       F.       G.   

Present Worth of Lease

      -       A.       B.       C.       D.       E.       F.       G.   

Which option they should take: Buy or Lease ?

A.

[ Buy]

B.

[$-551,312]

C.

[$-473,236]

D.

[Lease]

E.

[$-94,775]

F.

[$-521,250]

G.

[$-396,250]

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Answer #1

of buy=- machin va ,以 - of maintenan 70000 CPIF, 10., 5) SbO,oo (0.6204) TOOoL 3 741) optionIJ is c、rr Pw of lea se 2 1:13 I-

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