Question
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. | Calculate present value if the discount rate is 10%?(Do not round intermediate calculations. Round your answers to 2 decimal places.) |
| Present Value | |
| Buy | $ |
| Lease |
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Fundamentals of Investments, Valuation and Management
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
8th edition
1259720697, 1259720691, 1260109437, 9781260109436, 978-1259720697
