#2 there is a choice to buy a car worth $32,000 with 100% financing at 3.99% APR for 60 months or lease at $500 per month. The car will need maintenance in the 3rd year worth $525 and $825 in the 4th year. The car will have 30% residual value in the 5th year. Sales tax on new car is 6% and required rate of returm is 5%.

calculate the ownership operating advantage in year 1

a)($939)

b($1070)

c($1065)

d($1265)