Use the information for the question(s)below.
Your firm needs to invest in a new delivery truck.The life expectancy of the delivery truck is five years.You can purchase a new delivery truck for an upfront cost of $200,000,or you can lease a truck from the manufacturer for five years for a monthly lease payment of $4000 (paid at the end of each month).Your firm can borrow at 6% APR with quarterly compounding.
-The present value of the lease payments for the delivery truck is closest to:
A)$206,900.
B)$207,050.
C)$207,680.
D)$198,420.

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The Answer of Use the information for the question(s)below.
Your firm needs to invest in a new delivery truck.The life expectancy of the delivery truck is five years.You can purchase a new delivery truck for an upfront cost of $200,000,or you can lease a truck from the manufacturer for five years for a monthly lease payment of $4000 (paid at the end of each month).Your firm can borrow at 6% APR with quarterly compounding.
-The present value of the lease payments for the delivery truck is closest to:
A)$206,900.
B)$207,050.
C)$207,680.
D)$198,420.

Use the Information for the Question(s)below