A young graduate is trying to decide whether to lease or buy a car for the...
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A young graduate is trying to decide whether to lease or buy a car for the next three years. The cash flows for each choice are shown below. (We will ignore gas, insurance, and tag fees.) YEAR LEASE PURCHASE 0 -$4,350.00 -$36,050.00 The graduate has a personal discount rate of 7.00%. 2 -$3,500.00 -$3,500.00 -$3,500.00 0 0 $26,083.00 What is the NPV of purchasing the car and selling after three years? (HINT: The answer will be a negative number...) Submit Answer format: Currency: Round to: 2 decimal places. A young graduate is trying to decide whether to lease or buy a car for the next three years. The cash flows for each choice are shown below. (We will ignore gas, insurance, and tag fees.) YEAR LEASE PURCHASE 0 -$4,350.00 -$36,050.00 The graduate has a personal discount rate of 7.00%. 2 -$3,500.00 -$3,500.00 -$3,500.00 0 0 $26,083.00 What is the NPV of purchasing the car and selling after three years? (HINT: The answer will be a negative number...) Submit Answer format: Currency: Round to: 2 decimal places.
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