Question

You need to decide whether to purchase a $10,000 copier or lease it for $320 per month for three years for the office. The past year your office made 50,000 copies, purchased $500 in toner supplies and had $800 in repair and maintenance expense. You do not anticipate a significant increase in use of the copier for the next three years. The lease agreement provides for toner, repair and maintenance. Assume you will supply the necessary paper for all copying jobs regardless of option chosen. Which option will save your company the most money?
What is the cost in the first year for purchasing the copier if you choose the purchase option?

Answer 1

Leasing it. Hope this helps!
It will cost $11,300 in the first year with the buying option.
it will cost $11,520 for three years with the renting option.
Hope this helps!