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(1) Annual repairs and maintenance on the vehicles will be $7,000. Under the terms of the lease, the lessor is responsible for repairs and maintenance.

(1) Annual repairs and maintenance on the vehicles will be $7,000. Under the terms of the lease, the lessor is responsible for repairs and maintenance. (2) Annual gas and bridge passes will cost $4,000 per year. a) Prepare a Net Advantage to Leasing analysis. Should your firm buy or lease the vehicles? Show all your work. (15 marks) b) How would you answer to part (a) change if the lessee was responsible for repairs and maintenance? Show your work. (2 marks)

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