Question: A construction company is considering two options for equipping a bulldozer for a construction project that will last 6 years: Option (A) is to buy

A construction company is considering two options for equipping a bulldozer for a construction project that will last 6 years: Option (A) is to buy the bulldozer for $380,000, use it for 6 years, then sell (liquidate) it for 15% of the purchase price. Option (B) is to lease the bulldozer at $60,000/year for the term of 6 years. For option (B), lease payments must be made at the beginning of each period (year): i.e., at n=0, n=1, n=2, and nothing at n=6 years. For leasing to become more attractive than buying, the value of the MARR (nominal interest) must be?

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