SOLVE BY HAND EQUATIONS

oon onstruction firm needs a new small loader. It be leased from the dealer for 3 years for $5500 om 632 A unt year including all maintenance, or it can be pur- chased for $20,000. The firm expects the loader to have a salvage value of $7000 after 7 years. The maintenance will be $500 the first year and then it will increase by $300 each year. The firm's inter- est rate is 12% per year. Compare the EUACs for for per ed 6-36 ts, leasing and buying the loader. ar aet Baabak Ashuri, Georgia Institute of Technology