Annual maintenance expenses

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Reference no: EM131052269

A firm can lease a truck for 5 years at a cost of $45,000 annually. It can instead buy a truck at a cost of $95,000, with annual maintenance expenses of $25,000. The truck will be sold at the end of 5 years for $35,000. The cost of capital is 15%. Which is a better option? A. EAC of Lease = ?B. PV of all Costs of Purchase =? C. EAC of Purchase =? D. Better Option is to?

Reference no: EM131052269

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