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Hi the question is should you buy or lease the automobile? Please ignore the subsequesnt decription. Thank you! 4) You are deciding whether to buy

image text in transcribedHi the question is should you buy or lease the automobile? Please ignore the subsequesnt decription. Thank you!

4) You are deciding whether to buy or lease a $30,000 automobile. A three year lease will cost $6,000 per year (paid at the end of the year). If you instead purchase the automobile, the car will be worth $20,000 at the end of 3 years. Assume your discount rate is 10%. Should you buy or lease the automobile? Suppose if you lease, at the end of the three year lease you will again lease another automobile for three years at $6,000 per year. Instead, if you purchase the automobile

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