answer all parts

1. You just received a job offer from a hedge fund in New York and are thinking of buying a new car. The lease is for 48 months. The financing information is as follows: (22 points) - The cost of purchasing the car is $58,000 - Buyers must also pay a destination charge of $700, but lessees bave no destination charge. - There is a $1,400 acquisition fee paid by the lessee at the beginning of the lease. - There is a $1,200 security deposit for the lessee ar the beginning of the lease. - This fee is refunded at the end of the lease. - The lease residual value at the end of 4 years is $27,000. If the true value is less than this, you must pay the difference. If the true value is greater than this, you do not receive anything. - You believe the value of the car will be worth $23,500 at the end of the lease. - The monthly lease payments are $900 a month for 48 months. a. What is the monthly IRR and annual IRR of buying versus leasing? (10 points) b. Given a discount rate of 9%, what is the NPV of buying versus leasing? Should you buy or lease? ( 4 points) c. As "your estimated residual value" increases from 20,000 to 32,000 , how does the IRR and NPV of buying versus leasing change? ( 4 points) d. Explain why this pattem makes econotnic sense. (4 points)