30. Annuity Value. Your landscaping company can lease a truck for $8,000 a year (paid at year-...

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30. Annuity Value. Your landscaping company can lease a truck for $8,000 a year (paid at year- end) for 6 years. It can instead buy the truck for $40,000. The truck will be valueless after 6 years. If the interest rate your company can earn on its funds is 7%, is it cheaper to buy or lease? (LO3)

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Fundamentals Of Corporate Finance

ISBN: 9780073382302

6th Edition

Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus

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