A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3,811 per year, paid at the beginning of each year, in which case maintenance is provied. Alternatively, she can buy a used van for $6,510 and pay for maintenance herself. She expects to keep the van for three years at which time she could sell it for $1,454. 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%?

A construction manager just starting in private practice needs a van to carry crew and equipment. She can lease a used van for $3,811 per year, paid at the beginning of each year, in which case maintenance is provied. Alternatively, she can buy a used van for $6,510 and pay for maintenance herself. She expects to keep the van for three years at which time she could sell it for $1,454. 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%?

Fundamentals Of Construction Estimating

4th Edition

ISBN:9781337399395

Author:Pratt, David J.

Publisher:Pratt, David J.

Chapter9: Pricing Construction Equipment

Section: Chapter Questions

Problem 2RQ

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Im not sure of my answer thats why am asking for help, thanks a lot bartleby. Worth it to buy.
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