Your landscaping company can lease a truck for 8900 a year, Financial Management

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Your landscaping company can lease a truck for 8900 a year

Your landscaping company can lease a truck for $8,900 a year for 6 years. It can instead buy the truck for $45,000. The truck will be valueless after 6 years. What is the present value of the lease payments if the opportunity cost of capital is 7%? Is it cheaper to buy or lease?

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Financial Management: Your landscaping company can lease a truck for 8900 a year

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Financial Management: Your landscaping company can lease a truck for 8900 a year

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