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 a truck, it will sit in his money market account earning 0.1% per month.Ford is offering a lease-with-an-option-to-by plan, which requires a $3,000 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.

(a)Assuming Aldo plans to exercise the purchase option, should he (circle the correct answer - no explanation needed - but you will need to solve (b to answer the question)

i.By the truck outright or

ii. acquire it via the lease/buy option?

(b)In present value dollars, how much better off is he doing the right thing rather than the wrong thing?Be sure to show your work and explain your answer.