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A firm can lease a truck for 4 years at a cost of $50.000 annually. It can instead buy a truck at a cost of
A firm can lease a truck for 4 years at a cost of $50.000 annually. It can instead buy a truck at a cost of $100.000, with annual maintenance expenses of $30,000. The truck will be sold at the end of 4 years for $40.000. a. What is the equivalent annual cost of buying and maintaining the truck if the discount rate is 10%? (Do not round Intermediate calculations. Round your answer to 2 decimal places.) Equivalent annual cost b. Which is the better option? Lease OBuy
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