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A firm can lease a truck for 4 years at a cost of $ 30,000 annually

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A firm can lease a truck for 4 years at a cost of $ 30,000 annually. It can instead buy a truck at a cost of $ 80,000, with annual maintenance expenses of $ 10,000. The truck will be sold at the end of 4 years for $ 20,000. Which is the better option if the discount rate is 12%?

 

Paper#21738 | Written in 18-Jul-2015

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