Deutsche Transport can lease a truck for four years at a cost of 35,000 annually. It can instead buy a truck at a cost of 85,000, with annual maintenance expenses of 15,000. The truck will be sold at the end of four years for 23,000. Ignore taxes. a. What is the equivalent annual cost of buying and maintaining the truck if the discount rate is 12%?

b. Which is the better option: leasing or buying?