Question: 6-32: A construction firm needs a new small loader. It can be leased from a dealer for 3 years for $5,500 per year including all

6-32: A construction firm needs a new small loader. It can be leased from a dealer for 3 years for $5,500 per year including all maintenance, or it can be purchased for $27,000. The firm expects the loader to have a salvage value of $8500 after 8 years. The maintenance will be $6500 the first year and then it will increase by $250 each year. The firm's interest rate is 10% per year. Compare the EUACs for leasing and buying the loader.

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