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A young graduate is trying to decide whether to lease or buy a car for the next three years. The cash flows for each choice
A young graduate is trying to decide whether to lease or buy a car for the next three years. The cash flows for each choice are shown below. (We will ignore gas, insurance, and tag fees.) The graduate has a personal discount rate of 6.00%. What is the NPV of purchasing the car and selling after three years? (HINT: The answer will be a negative number...) Answer format: Currency. Round to: 2 decimal places. A young graduate is trying to decide whether to lease or buy a car for the next three years. The cash flows for each choice are shown below. (We will ignore gas, insurance, and tag fees.) The graduate has a personal discount rate of 6.00%. At what discount rate would the graduate be indifferent between the two choices? Answer format: Percentage Round to: 2 decimal places (Example: 9.24\%, \% sign required Will accept decimal format rounded to 4 decimal places (ex: 0.0924))
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