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Give me Pv of owning and leasing with both of them rounded to the nearest hundreth, and tell me which one is cheaper. 6. U-Haul
Give me Pv of owning and leasing with both of them rounded to the nearest hundreth, and tell me which one is cheaper.
6. U-Haul is evaluating a potential lease agreement on a truck that costs $500 and falls into the MACRS 7-year class. U-Haul can borrow at 5%. The truck would be used for 5 years, and its estimated residual value is $200. If U-Haul buys the truck, it would purchase a maintenance contract that costs $15 per year, payable at the beginning of each year. The lease terms, which include maintenance, call for a $90 lease payment at the beginning of each year. The lease would be classified as an operating lease by the IRS. U-Haul's tax rate is 21%. Should U-Haul lease or buy Step by Step Solution
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