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Lease vs purchase

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How do I start this in trying to determine what is best suitable for the company? Lease vs purchase?

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Solution Summary

This explains the steps to compare the decisions such as:
Lease vs purchase

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NET PRESENT VALUE

INITIAL OUTLAY= 22000

It should not buy the machine as NPV is negative

Internal rate of return 8.41%

PAY BACK PERIOD
Cumulative cash flows -22000 -18483 -14965 -11448 -7930 -4413 -895 2623 10140

Our positive cash flows are in the 7 th year, Thus ...

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