Problem

(PV) Your company can lease a truck for $ 10,000 a year (paid at the end of the year) for...

(PV) Your company can lease a truck for $ 10,000 a year (paid at the end of the year) for six years, or it can buy the truck today for $50,000. At the end of the six years the truck will be worthless. If the interest rate is 6%, what is the pres­ent value of the lease payments? Is the lease worthwhile?

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