Problem 6-24 Equivalent annual cash flow Deutsche Transport can lease a truck for four years...
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Problem 6-24 Equivalent annual cash flow Deutsche Transport can lease a truck for four years at a cost of 47,000 annually. It can instead buy a truck at a cost of 97,000, with annual maintenance expenses of 27,000. The truck will be sold at the end of four years for 29,000. Ignore taxes. a. What is the equivalent annual cost of buying and maintaining the truck if the discount rate is 12%? (Do not round intermediate calculations. Enter your answer in Euro. Round your answer to the nearest whole number.) Equivalent annual cost b. Which is the better option: leasing or buying? Better option Buying
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