Emma Runs a Small Factory That Needs a Vacuum Oven

question 31

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 $4,200 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 $8,642 less than the cost of the oven.
• C) Lease, since the present value (PV) of the lease is $2,212 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.

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Definitions:

Pandemic

A widespread epidemic that covers a large geographical region and infects a significantly large portion of the people.

Viral Evolution

The process by which virus populations and their genetic structures change over time due to mutations, recombination, and selection pressures.

Pathogens

Agents, usually microorganisms such as bacteria, viruses, or fungi, that cause disease in their host organisms.

Antibiotic Resistance

A phenomenon where bacteria evolve and become resistant to the effects of antibiotics, rendering treatments less effective.