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- What is the annual cost, before any tax considerations, of the lease option? Are there any tax considerations and if so, what is the after tax annual cost of the lease agreement? Explain your answer.
- What is the total cost of leasing the truck today?
- What are the annual cash flows if the truck is purchased with debt financing?
- What is the cost of purchasing the truck with debt financing today?
- Make a recommendation to your boss as to whether the company should buy or lease the truck. Justify your recommendations.
