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What is the fixed cost per month of keeping the truck

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Question - If you are the owner of a small transport company and wish to purchase a truck. The seller offers you three options:

1. pay $200,000 now and nothing more

2. pay $100,000 now and $120,000 in five years

3. pay nothing now and $240,000 in five years

If the interest rate is 5%, which option will you choose? What is the fixed cost per month of keeping the truck for five years if you spread it out evenly over the five years?

Reference no: EM133169981

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