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40. Compare the cost of the following leasing agreement with the finance charge on a loan for the same time period. The price of the

40. Compare the cost of the following leasing agreement with the finance charge on a loan for the same time period. The price of the car is $14,000, and its projected residual value at the end of four years is $3,000.

Monthly payment

$250

Capital cost reduction

$1,000

Disposition charge

$200

Other things being equal, one would want to finance this car rather than take this lease if the finance cost were less than

a.

$200.

b.

$1,550.

c.

$2,200.

d.

$2,450.

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