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1. Use the following data: Down payment (to finance vehicle) $ 7,400 Down payment for lease $ 2,900 Monthly loan payment $ 1,040 Monthly lease
1.
| Use the following data: |
| Down payment (to finance vehicle) | $ | 7,400 | Down payment for lease | $ | 2,900 | ||
| Monthly loan payment | $ | 1,040 | Monthly lease payment | $ | 780 | ||
| Length of loan | 48 | months | Length of lease | 48 | months | ||
| Value of vehicle at end of loan | $ | 14,000 | End-of-lease charges | $ | 1,450 | ||
| a. | What is the total cash outflow for buying and for leasing a motor vehicle with a cash price of $43,500? |
| Total Cash Outflow | |
| Buying | $ |
| Leasing | $ |
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