You can purchase a truck today for $25,000. This truck provides benefits equal to $2,300 a year and has a life span of 10 years. These trucks are expected to decrease in price by 15% per year. Suppose the discount rate is 11%. Should you purchase the truck today or wait? When is the best time to buy it? Why? (round your final answer to 2 decimals)

Answer rating: 100% (QA)

You should wait to purchase the truck In this scenario the best time to buy the truck is in year 6 H... View the full answer