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A firm can lease a truck for 4 years at a cost of $31,000 annually. It can instead buy a truck at a cost of
A firm can lease a truck for 4 years at a cost of $31,000 annually. It can instead buy a truck at a cost of $81,000, with annual maintenance expenses of $11,000. The truck will be sold at the end of 4 years for $21,000. a. Calculate present value if the discount rate is 12%? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
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