S a department head in the hospital, you and your colleagues need to decide on whether to purchase new equipment.

As a department head in the hospital, you and your colleagues need to decide on whether to purchase new equipment.
The acquisition cost is $75,000 if it is purchased. The depreciation of the equipment will be $10,000 for years two through four. If the equipment is leased, it will cost $11,000 per year, for five years.

a?In regards to owning versus leasing, which method would you recommend and why?

a?Explain using your understanding of capital budgeting and capital structure decisions.
(please focus on health care).