A firm can lease a truck for 3 years at a cost of 48000, Ask an Expert

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A firm can lease a truck for 3 years at a cost of $48,000 annually. It can instead buy a truck at a cost of $98,000, with annual maintenance expenses of $28,000. The truck will be sold at the end of 3 years for $38,000.

a. calculate the present value if the discount rate is 10%

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