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A company must decide on the lowest cost option they can find for a delivery truck. They are considering Leasing the Big MAAC. Alternatively, they

A company must decide on the lowest cost option they can find for a delivery truck. They are considering Leasing the Big MAAC. Alternatively, they may purchase the Dodge RAM. They do have desired return on investment they want to make on all expenditures for big investments like this truck. Given what was taught in Module 7, which method can be used to determine the best option for this company? The purchase involves buying then selling the truck at a later date. The lease has a down payment and a yearly lease payment.

  • A. Net Present Value
  • B. Internal Rate of Return
  • C. Use the RATE function
  • D. Either method A or B could be used.

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