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Your landscaping company can lease a truck for $7,500 a year for 6 years. It can instead buy the truck for $35,000. The truck will

Your landscaping company can lease a truck for $7,500 a year for 6 years. It can instead buy the truck for $35,000. The truck will be valueless after 6 years.

a.
What is the present value of the lease payments, if the opportunity cost of capital is 7%. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Present value $

b. Is it cheaper to buy or lease?

Buy

Lease

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