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Assume your company needs a new truck. You can lease the truck for 4 years at a cost of $30,000 annually. You can instead buy
Assume your company needs a new truck. You can lease the truck for 4 years at a cost of $30,000 annually. You can instead buy the 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. As the finance manager, which is the better option if the discount rate is 12%?
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