Aldo plans to purchase an F-150 Ford pickup truck for $21,000. He has the cash and if he does not spend it on the truck, it will sit in his money market account earning 0.1% per month. Ford is offering a lease with an option to buy plan, which requires $3000 down payment up front and then payments at the end of each of the next 36 month of $259. At the end of the third year, he has the option to purchase the truck for $10,000.

Assuming Aldo plans to exercise the purchase option, should he buy the truck outright, or acquire it via the lease/buy option?

In present value dollars, how much better off is he doing the right thing rather than the wrong thing?