3. (PV) Your company can lease a truck for $10,000 a year (paid at the end of...

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3. (PV) Your company can lease a truck for $10,000 a year (paid at the end of the year) for six years, or it can buy the truck today for $50,000. At the end of the six years, the truck will be worthless. If the interest rate is 6%, what is the present value of the lease payments? Is the lease worthwhile?

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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