The effective monthly discount rate that you should use to evaluate the truck lease is closest to:

A 0.498%

B 1.500%

C 0.487%

D 1.535%

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 $4000 (paid at the end of each month). Your firm can borrow at 6% APR with quarterly compounding. Should you purchase