Your landscaping company can lease a truck for $$8,100$ a year $($paid at year$-$end$)$ for $7$ years. It can instead buy the truck for $$43,000.$ The truck will be valueless after $7$ years. The interest rate your company can earn on its funds is $8\%.$

a$.$ What is the cost of leasing? $($Do not round intermediate calculations. Round your answer to $2$ decimal places.$)$

Present value of lease $

b$.$ Is it cheaper to buy or lease?

it is cheaper to buy.

Since the purchase price is less than the present value of the lease

What if the lease payments are an annuity due, so the first payment comes

c$-1.$ immediately? $($Do not round intermediate calculations. Round your answer to $2$ decimal places.$)$

Present value of lease $

c$-2.$ Is it cheaper to buy or lease?

Lease

Buy