What is the equivalent annual cost of buying and maintaining

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Reference no: EM132017253

A firm can lease a truck for 4 years at a cost of $43,000 annually. It can instead buy a truck at a cost of $93,000, with annual maintenance expenses of $23,000. The truck will be sold at the end of 4 years for $33,000.

a. What is the equivalent annual cost of buying and maintaining the truck if the discount rate is 10%? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM132017253

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