your landscaping company can lease a truck for $7,000 a year (paid at year end) for 5

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your landscaping company can lease a truck for $7,000 a year (paid at year end) for 5 years. It can instead buy the truck for 30,000. The truck will be valueless after 5 years. The interest your company can earn on its funds is 6%.

A. what is the present value of the cost of leasing? (do not round intermediate calculations. round your answer to 2 decimal places.)

B. is it cheaper to buy or lease?

C. what is the present value of the cost of leasing if the lease payments are an annuity due, so the first payment comes immediately? (do not rund intermediate calculations. round your answer to 2 decimal points)

D. Is it now cheaper to buy or lease?

Posted Date: May 19, 2024 02:05 AM

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your landscaping company can lease a truck for $7,000 a year (paid at year end) for 5

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