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Total cost for purchase after 4 years = 4000 * (1.14)^4 = 6755.9

Total cost for leasing after 4 years = ((1250 * 1.14 + 1250) * 1.14 + 1250 )*1.14 + 1250 = 6151.43 (assuming rent is paid at end of a year). So, leasing is preferable.
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