Solutions to Chapter 1 - San Francisco State University

Since this is greater than $40,000 (the cost of buying a truck), we conclude that, if the first payment on the lease is due immediately, it is less expensive to buy the truck than to lease it. 31. Compare the present value of the payments. Assume the product sells for $100. Installment plan: PV = $25 + [$25 ( annuity factor(5%, 3 years)] = $93.08 ................
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