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how do you get this question? 17) Your firm needs to invest in a new delivery truck. The life expectancy of the delivery truck is

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17) Your firm needs to invest in a new delivery truck. The life expectancy of the delivery truck is five years. You can purchase a new delivery truck for an upfront cost of $200,000, or you can lease a truck from the manufacturer for five years for a monthly lease payment of $4,000 (paid at the end of each month). Your firm can borrow at 6% per year with quarterly compounding. What is the monthly discount rate that you should use to evaluate the truck lease? a) 0.487% b) 0.498% c) 0.500% d) 0.512% e) 1.015%

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