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A firm can lease a truck for 4 years at a cost of $30,000 annually. Alternately, it can purchase the truck for $80,000 with an
A firm can lease a truck for 4 years at a cost of $30,000 annually. Alternately, it can purchase the truck for $80,000 with an estimated annual maintenance cost of $10,000. The truck can be sold at the end of the 4 years for $20,000. Which is the better option if the discount rate is 20%? Show calculations
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