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A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3,898 per year, paid at the beginning of each year, in which case maintenance is provide. Alternatively, she can buy a used van for $7,866 and pay for maintenance herself. She expects to keep the van for three years at which time she could sell it for $1,390. What is the most she should pay for uniform annual maintenance to make it worthwhile to buy the van instead of leasing it, if her MARR is 20%?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M91230658

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