Emma Runs a Small Factory That Needs a Vacuum Oven

Multiple Choice

Emma runs a small factory that needs a vacuum oven for brazing small fittings.She can purchase the model she needs for $180,000 up front,or she can lease it for five years for $4200 per month.She can borrow at 7% APR,compounded monthly.Assuming that the oven will be used for five years,should she purchase the oven or should she lease it?

A) Lease,since the present value (PV) of the lease is $12,224 less than the cost of the oven.
B) Lease,since the present value (PV) of the lease is $8642 less than the cost of the oven.
C) Lease,since the present value (PV) of the lease is $2212 less than the cost of the oven.
D) Buy,since the present value (PV) of the lease is $32,108 more than the cost of the oven.
E) Buy,since the present value (PV) of the lease is $72,000 more than the cost of the oven.