Could you help me this problems, please? Thank you~!!

INSTRUCTIONS

Complete this assignment using the information listed below. Be sure to fill in all of the blanks...2 points will be deducted from your total if you don't. Also, 4 points will be deducted for each if line f or line l are incorrect. In addition, 2 points will be deducted if the final Answer is incorrect or not completed.

Youve recently been given a promotion and feel its time to upgrade your wheels. Your decision has come down to purchasing a new 2017 BMW 320i at an agreed-upon price of $34,000 or leasing it. If you purchase it, there is a required 20% down payment of $6,800, plus sales taxes, title, and registration.* The monthly payments over the 2 years if it's financed at 8% are $1,221.14. If you didnt buy that car, you could have earned 6% interest on the money you used for your down payment; thus the opportunity cost is 6%.

In negotiating the lease option, the residual value for the car at the end of 2 years was estimated to be $24,500 (the expected market value of the car at the end of the loan). If the BMW is leased with a capitalized cost of $34,000, there would be a down payment or capitalized cost reduction of $3,000. In addition to the down payment is a security deposit of $500, and at signing you must also make the first months payment plus taxes, title, registration*, and other fees similar to those incurred when buying a car outright. The monthly lease payment is $518.00. Assume there are no end-of-lease charges or deductions in the return of the security deposit.

* For the purpose of this assignment, ignore taxes, title and registration because they are generally the same whether you lease or purchase the car.

Worksheet for the Lease vs. Purchase Decision Cost of Purchasing YOUR NUMBERS a. Agreed-upon purchase price b. Down payment C. Total loan payments (monthly loan payment of d. Opportunity cost on down payment ( e. Less: Expected market value of the car at the end of the loan f. Total cost of purchasing (lines b + c+d- e) months) % opportunity cost x years x line b) Cost of Leasing g. Down payment (capitalized cost reduction) of h. Total lease payments (monthly lease payments of months) % opportunity cost x years x line g) opportunity cost of total initial payment ( j. Any end-of-lease charges (perhaps for excess miles), if applicable K. Less: Refund of security deposit 1. Total cost of leasing (lines g+hti+j- k) Given this example, which option would be more expensive