Sacramento Cab Company owns several taxis thatwere
Chapter , Problem 13-47(choose chapter or problem)
Sacramento Cab Company owns several taxis thatwere purchased for $25,000 each 4 years ago. Thecabs current market value is $12,000 each, and ifthey are kept for another 6 years they can be soldfor $2000 per cab. The annual maintenance cost percab is $1000 per year. Sacramento Cab has beenapproached about a leasing plan that would replacethe cabs. The leasing plan calls for payments of$6000 per year. The annual maintenance cost foreach leased cab is $750 per year. Should the cabsbe replaced if the interest rate is 10%?
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