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Your firm is deciding whether to purchase a durable delivery vehicle or short-term vehicle. The durable vehicle cost $23,000 and should last seven years. The
Your firm is deciding whether to purchase a durable delivery vehicle or short-term vehicle. The durable vehicle cost $23,000 and should last seven years. The short-term vehicle cost $17,000 and should last five years. If the cost of capital for the firm is 15%, then what is the equivalent annual cost for the best choice for the firm, and which is the best choice? Round to nearest dollar.
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