Business, 06.04.2021 05:20 moningersavannah

A construction firm needs a small loader. It can be leased from the dealer for 3 years for $5500 per year including all maintenance, or it can be purchased for $27,000. The firm expects the loader to have a salvage value of $8,500 after 8 years. The maintenance will be $650 the first year and then it will increase by $250 each year. The firm's interest rate is 10% per year. Compare the EPICs for leasing and buying the loader. Which alternative should be chosen leasing or buying

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A construction firm needs a small loader. It can be leased from the dealer for 3 years for $5500 per...

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