A firm is considering leasing or buying a mower. The mower costs $516 and is expected to create operating cash flows (this is the cash flows net of any taxes and other cash outflows) of $25 per year, for the next three years. At the third year, the mower can be sold for a net sale price of $70. If the appropriate discount rate is 5%, what is the cost of owning the mower? If the cost is negative, record your answer with a negative sign.

Answer rating: 100% (QA)

To calculate the cost of owning the mower we need to consider the initial cost of purchasing the mow... View the full answer