tes Problem 8-33 Equivalent Annual Annuity (LO5) A firm can lease a truck for 5 years...

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tes Problem 8-33 Equivalent Annual Annuity (LO5) A firm can lease a truck for 5 years at a cost of $45,000 annually. It can instead buy a truck at a cost of $95,000, with annual maintenance expenses of $25,000. The truck will be sold at the end of 5 years for $35,000. a. What is the equivalent annual cost of buying and maintaining the truck if the discount rate is 15%? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Equivalent annual cost b. Which is the better option? O Lease Buy < Prev 8 of 10 Next tes Problem 8-33 Equivalent Annual Annuity (LO5) A firm can lease a truck for 5 years at a cost of $45,000 annually. It can instead buy a truck at a cost of $95,000, with annual maintenance expenses of $25,000. The truck will be sold at the end of 5 years for $35,000. a. What is the equivalent annual cost of buying and maintaining the truck if the discount rate is 15%? Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Equivalent annual cost b. Which is the better option? O Lease Buy < Prev 8 of 10 Next