A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3,938 per year, paid at the beginning of each year, in which case maintenance is provied. Alternatively, she can buy a used van for $5,473 and pay for maintenance herself. She expects to keep the van for three years at which time she could sell it for $1,139. 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 $3,938 per year, paid at the beginning of each year, in which case maintenance is provied. Alternatively, she can buy a used van for $5,473 and pay for maintenance herself. She expects to keep the van for three years at which time she could sell it for $1,139. 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

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter13: best-practice Tactics: Game Theory

Section: Chapter Questions

Problem 14E

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A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3,777 per year, paid at the beginning of each year, in which case maintenance is provied. Alternatively, she can buy a used van for $5,669 and pay for maintenance herself. She expects to keep the van for three years at which time she could sell it for $1,110. 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%?
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