sum at that point. 3-12 A firm is evaluating whether to lease or purchase four trucks. The four trucks can be purchased for a total cost of $240,000 and operated for maintenance, insurance, and general operating costs of $20,000 at time 0, $40,000 at year 1, $50,000 at year 2, and $30,000 at year 3 (putting operating costs at the closest points in time to where they are incurred) with an expected salvage value of $100,000 at the end of year 3. The four trucks could be leased for $120,000 per year, for the 3 years, with monthly payments, so consider $60,000 lease cost at year 0, $120,000 per year at years 1 and 2, and $60,000 at year 3, putting lease costs at the closest point in time to where they are incurred. The lease costs include maintenance costs but do not include insurance and general operating costs of $10,000 at year 0, $20,000 per year at years 1 and 2, and $10,000 at year 3. If the minimum rate of return is 15%, use present worth cost analysis to determine if economic analysis dictates leasing or purchasing. Verify your conclusion with ROR, NPV, and PVR analysis