Tow Ltd Plans to Expand Its Fleet of Train Engines

question 38

Multiple Choice

Tow Ltd plans to expand its fleet of train engines.It is considering the following alternatives:
• Purchase
• Lease
Further information is as follows:
What is the maximum operating licence fee that Tow Ltd would be willing to pay?

• A)$684 618
• B)$0
• C)$851 508
• D)$834 819

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