+66 A resort needs a piece of machinery to move snow in the winter months for October to
the end of April.
a) Predict whether the company should rent, buy, or lease, based on the costs
described below. Justify your prediction.
•A new tractor costs $18600 and can be financed at 6.6% compounded monthly for 7
months
•Renting a tractor will cost $60 per day
•Leasing costs are $2000 down and $1345 per month for 7 months
b) Verify your prediction.
c) What are the pros and cons to each option?
