A bulldozer can be purchased for $380,000 and used for 6 years, when its salvage value is 15% of the first cost. Alternatively, it can be leased for $60,000 a year. (Remember that lease payments occur at the start of the year.) The firms interest rate is 12%. a. What is the interest rate for buying versus leasing? Which is the better choice? b. If the firm will receive $65,000 more each year than it spends on operating and maintenance