Solutions to Chapter 1
Leasing the truck means that the firm must make a series of payments in the form of an annuity. Calculate the present value as follows: PV= Using a financial calculator, enter: PMT = 8,000, n = 6, i = 7%, FV = 0, and compute PV = $38,132.32. Since $38,132.32 < $40,000 (the cost of buying a truckā¦ ................
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