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Business, 20.03.2020 11:32 10035391

A firm can lease a truck for 4 years at a cost of $30,000 annually. It can instead buy a truck at a cost of $80,000 (in year 0), with annual maintenance expenses of $10,000 (year 1 to year 4). The truck lasts four years. The discount rate is 10%. Is it better to lease instead of buying the truck?

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