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Compare the cost of the following leasing agreement with the finance charge on a loan for the same time period. The price of the car
Compare the cost of the following leasing agreement with the finance charge on a loan for the same time period. The price of the car is $14,000, and its projected residual value at the end of four years is $3,000.
Monthly payment$250
Capital cost reduction $1,000
Disposition charge $200
Other things being equal, one would want to finance this car rather than take this lease if the finance cost were less than
2,200
2,450
200
1,550
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