A firm can lease a truck for 4 years at a cost of $30,000 annually. It can instead buy a truck at a cost of $80,000, with annual maintenance expenses of $10,000. The truck will be sold at the end of 4 years for $20,000.

What is the equivalent annual cost of buying and maintaining the truck if the discount rate is 10%?

Note: Do not round intermediate calculations. Round your answer to 2 decimal places.

Which is the better option?

1. multiple choice

Lease

Buy