A firm can lease a truck for 5 years at a cost of 18,500 annually. The truck will be serviced by the lessor. The company
A firm can lease a truck for 5 years at a cost of 18,500 annually. The truck will be serviced by the lessor. The company can instead buy a truck at a cost of 50,000 with annual maintenance expenses of 14,000. The truck will be sold at the end of 5 years for 15,000 (net of taxes). The cost of capital is 15%. Compute the EAC of the purchase. How much will the firm save annually?
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Authors: George H. Pink, Paula H. Song
7th Edition
1640553177, 978-1640553170
