Chapter 2 Financial Mathematics: Borrowing Money Name: 2.4 Buy, Rent, or Lease? p. 129 #10 A company has spent $70 000 for car rentals over 2 years. The company's financial officer wants to determine if the company should continue to rent or if it should buy or lease two vehicles instead. A new car costs $32 000. A 5% down payment is required. The rest can be financed at 3.6%, compounded monthly, for 2 years. Assume depreciation of 40% a year and monthly payments. A 2-year lease for a car requires a down payment of $2000 and monthly payments of $770. a) Determine the costs of each option: renting, buying, and leasing. TVM SOLVER N = 1% = PV = PMT = FV = P/ = C/Y= PMT: BEGIN b) Recommend a course of action for the company. Justify your recommendation