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4-IECISO General Motors advertised three alternatives for a 17-month lease on a new Tahoe (1) zero dollars down and a lease payment of $2600 per

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4-IECISO General Motors advertised three alternatives for a 17-month lease on a new Tahoe (1) zero dollars down and a lease payment of $2600 per month for 17 months, (2) $8,700 down and $2,350 per month for 17 months, or (3) $47,500 down and no payments for 17 months. (Table B.1. Table B 2. Table B3, and Table B4) (Use appropriate factor(s) from the tables provided.) Calculate the total present value of lease payments under the three alternatives (assume the annual interest rate is 12% compounded monthly). 02:06:03 n Option 1 Table Value Amount Present Value Down Payment Monthly Payments Total Present Value Option 2 Table Value Amount Present Value 1.0000 Down Payment Monthly Payments Total Present Value Option 3 Amount Present Value Table Value 10000 Down Payment Total Present Value Indicate which is the best alternative (assume you have enough cash to accept any alternative). O Option 1 O Option 2 O Option 3 General Motors advertised three alternatives for a 19-month lease on a new Tahoe: (1) zero dollars down and a lease payment of $2,200 per month for 19 months, (2) $7,500 down and $1,900 per month for 19 months, or (3) $43,500 down and no payments for 19 months. (Table B.1. Table B. 2. Table 8.3. and Table B.4) (Use appropriate factor(s) from the tables provided.) 8025134 Calculate the total present value of lease payments under the three alternatives (assume the annual interest rate is 12% compounded monthly). Amount Present Value Table Value 1.0000 Option 1 Down Payment Monthly Payments Total Present Value Option 2 Down Payment Monthly Payments Total Present Value Option 3 Amount Present Value Table Value 1.0000 Amount Present Value Table Value 1.0000 Down Payment Total Present Value Indicate which is the best alternative (assume you have enough cash to accept any alternative) Option 1 Option 2 Option 3

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