Essay
Finch, Inc. has bought a new server and must decide what to do with the old one. The cost of the old server was originally $60,000, and it has been depreciated $45,000. The company has received two offers. One offer was made to purchase the equipment outright for $18,500, less a 5% sales commission. The other offer was to lease the equipment for $7,000 for the next five years, but the company will be required to provide maintenance and insurance totaling $3,000 per year. What offer should Finch, Inc. accept?
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