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A firm can lease a truck for 5 years at a cost of $49,000 annually. It can instead buy a truck at a cost of

A firm can lease a truck for 5 years at a cost of $49,000 annually. It can instead buy a truck at a cost of $99,000, with annual maintenance expenses of $29,000. The truck will be sold at the end of 5 years for $39,000.

a. What is the equivalent annual cost of buying and maintaining the truck if the discount rate is 12%?

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