A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3,698 per year, paid at the beginning of each year, in which case maintenance is provied. Alternatively, she can buy a used van for $6,471 and pay for maintenance herself. She expects to keep the van for three years at which time she could sell it for $1,301. What is the most she should pay for uniform annual maintenance to make it worthwhile to buy the van instead of leasing it, if her MARR is 20%? Enter your answer as follow: 123456
A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3,698 per year, paid at the beginning of each year, in which case maintenance is provied. Alternatively, she can buy a used van for $6,471 and pay for maintenance herself. She expects to keep the van for three years at which time she could sell it for $1,301. What is the most she should pay for uniform annual maintenance to make it worthwhile to buy the van instead of leasing it, if her MARR is 20%? Enter your answer as follow: 123456
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3,698 per
year, paid at the beginning of each year, in which case maintenance is provied. Alternatively, she can buy a used van for $6,471 and pay for
maintenance herself. She expects to keep the van for three years at which time she could sell it for $1,301. What is the most she should
pay for uniform annual maintenance to make it worthwhile to buy the van instead of leasing it, if her MARR is 20%?
Enter your answer as follow: 123456
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