Rocky Mountain Bus Tours needs an additional bus for three years. It can lease a bus for $2100 payable at the beginning of each month, or it can buy a similar bus for $120,000, using financing at the rate of 7.5% compounded monthly. The bus's resale value after three years is expected to be $60,000. a. On strictly financial considerations, should the company lease or buy the bus? The company should (Click to select the bus. b.What is the financial advantage in current dollars of the preferred choice? (Round your Intermedlate calculations and answer to the nearest dollar.) The financial advantage

Rocky Mountain Bus Tours needs an additional bus for three years. It can lease a bus for $2100 payable at the beginning of each month, or it can buy a similar bus for $120,000, using financing at the rate of 7.5% compounded monthly. The bus's resale value after three years is expected to be $60,000. a. On strictly financial considerations, should the company lease or buy the bus? The company should (Click to select the bus. b.What is the financial advantage in current dollars of the preferred choice? (Round your Intermedlate calculations and answer to the nearest dollar.) The financial advantage

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Please do it by hand. I can't really understand excel explanations. Thank you.
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