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You are considering whether to buy or lease a car. If you buy the car...

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Accounting

You are considering whether to buy or lease a car. If you buy the car it is 30,000 dollars up front and will last 6 years. You will have annual maintenance costs of 800 each of the first 3 years and 1200 per year for years 4, 5, and 6. You can trade the car in at the end of 6 years for 4000 dollars. Assume the weighted average cost of capital is 8% interest. Calculate NPV for the purchase option.

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