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Deutsche Transport can lease a truck for four years at a cost of 30,000 annually....

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Accounting

Deutsche Transport can lease a truck for four years at a cost of 30,000 annually. It can instead buy a truck at a cost of 80,000, with annual maintenance expenses of 10,000. The truck will be sold at the end of four years for 20,000. Ignore taxes. a. What is the equivalent annual cost of buying and maintaining the truck if the discount rate is 10%?

b. Which is the better option: leasing or buying?

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Deutsche Transport can lease a truck for four years at a cost of 30,000 annually. It can instead buy a truck at a cost of 80,000, with annual maintenance expenses of 10,000. The truck will be sold at the end of four years for 20,000. Ignore taxes. a. What is the equivalent annual cost of buying and maintaining the truck if the discount rate is 10%? (Do not round intermediate calculations. Enter your answer in Euro. Round your answer to the nearest whole number.) Equivalent annual cost b. Which is the better option: leasing or buying? Better option

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