A firm can lease a truck for $7$ years at a cost of $$40,000$ annually. It can instead buy a truck at a cost of $$74,000,$ with annual maintenance expenses of $$11,000.$ The truck will be sold at the end of $7$ years for $$26,000.$ The discount rate is $5\mathrm{.}6\%.$ Which is the effective annual annuity $($EAA$)$ of buying the truck?

  

  

Answer rating: 100% (QA)

To find the effective annual annuity EAA of buying the truck we need to calculate the equivalent ann... View the full answer