Lease Financing. Vehicle A can be leased under a 4 -year contract for \(\$ 16,000\) per year or purchased with cash for \(\$ 54,400\). Vehicle B can be leased on a 6 -year contract for \(\$ 15,000\) per year or purchased with cash for \(\$ 74,900\). Assume cash funds at a cost of 10 percent. The first payment is due today on both vehicles. Ignore taxes.

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1. What is the embedded interest rate in each vehicle's contract?

2. If we want both vehicles, which should be purchased or leased?