25. Equivalent annual cash flow (S6.4) Deutsche Transport can lease a truck for four 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 four years for €20,000. Ignore taxes.

a. What is the equivalent annual cost of buying and maintaining the truck if the discount rate is 10%?

b. Which is the better option: leasing or buying?