Harbour Tours & Travels require new buses for their Brisbane extension plan.The company can lease a bus for 3 years at a cost of $48,000 annually. It can instead buy a bus at a cost of $98,000, with annual maintenance expenses of $28,000. The bus will be sold at the end of 3 years for $38,000.

a.What is the equivalent annual cost of buying and maintaining the bus if the discount rate is 10%?(Do not round intermediate calculations. Round your answer to 2 decimal places.)

b.Which is the better option?

• Lease?
• Buy?