Lease Vs Buy

Your landscaping company can lease a truck for $$8,450\mathrm{.}00$ a year for $6$ years. It can instead buy the truck for $$33,897\mathrm{.}61.$ The truck will be valueless after $6$ years.

a$.$ What is the present value of the lease payments, If the interest rate your company can earn on its funds is $15\mathrm{.}00\%.($Do not round intermediate calculations. Round your answer to $2$ decimal places.$)$

Present value

$

b$.$ Is it cheaper to buy or lease?

lease

buy