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Good Ship Service (GSS) is planning to expand its operations in upstate New York. The company has estimated that it will need a new fleet

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Good Ship Service (GSS) is planning to expand its operations in upstate New York. The company has estimated that it will need a new fleet of trucks for the proposed plan. The new trucks can either be leased or purchased. If GSS purchases the new trucks, their Ilife of the trucks is estimated to be 8 years, after which all of them can be sold for a total of $40,000. Leasing the trucks will require annual payments of $55,000. The lease requires that payments be made at the beginning of each year for the duration of the lease, which is 8 years. GSS uses a discount rate of 5%. Fill in the following blanks [Note: Write only POSITIVE numbers e.g. even it Excel gives you-253 or (253), write 253. Also, round your numbers to TWO decimal places e.g.253.12 A) Present value of the purchase option is: $ B) Present value of the lease option is: $ C) Which option should GSS choose? D) Would your answer to part C) change if the discount rate is 4%? Write 1 if "Purchase", or 2 if "Lease [Write 1 if Yes, or 2 if No

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