1. Alejandra wants to buy a new Ford Truck. She sees the following ad: 2015 Ford F-150 XLT SuperCrow 2.7L V6 EcoBoost wChrome or Sport 0% APR for 66 mos. Ford Credit Financing OR up to $10,000 in Total Savings BUILT Your Texas TOUGH Ford Dealers www.red.com a. She has negotiated a sales price of S36,585 and she has a $5,000 down payment. She is eligible for the full $10,000 cash rebate. Her bank has pre-approved her for a 72-month car loan at 3.24%. Assuming Alejandra wants the cheapest overall price, which option should she take? Should she take the 0% financing offer for 66 months from the dealer, or should she borrow the money from her bank at 3.24% to pay off the dealer and receive the $10,000 cash rebate? (show your work) Bank Option Dealer Option Selection Explanation: Sales Price Down Payment Cash Rebate PV N 1 FV PMT Total Payment Total Cost b. Now suppose she is only able to get $2,000 cash back (with the 3.24% financing from her bank). Does this change her decision? (show your work) Bank Option Dealer Option Selection Explanation: Sales Price Down Payment Cash Rebate PV N 1 FV