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  3. a bulldozer can be purchases for $380,000 and used

A bulldozer can be purchases for $380,000 and used for 5 years, when ita salvage...

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Accounting

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A bulldozer can be purchases for $380,000 and used for 5 years, when ita salvage value to 15% of the first cost Alternatively, it can be leased for 360.000 a year (Remember that lease payments occur at the start of the year) The firm's interest rate is 12% (a) What is the interest rate for buying very leasing? Which is the better choice? (b) the firm will receive $65,000 more each year than it spends on Operating and maintenance costs, should the form obtain the bulldozer? What is the rate of return for the bulldozer using the best financing plan

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