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Deutsche Transport can lease a truck for four years at a cost of 45,000 annually. It can instead buy a truck at a cost of
Deutsche Transport can lease a truck for four years at a cost of 45,000 annually. It can instead buy a truck at a cost of 95,000, with annual maintenance expenses of 25.000. The truck will be sold at the end of four years for 28,000. Ignore taxes. a. What is the equivalent annual cost of buying and maintaining the truck if the discount rate is 10%? (Do not round Intermediate calculations. Enter your answer in Euro. Round your answer to the nearest whole number.) Equivalent annual cost b. Which is the better option: leasing or buying? Better option
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