i have attached the document.James and Corrine are considering what to do about purchasing a new car. They planto acquire a new 2016 Toyota Highlander. The dealer has quotes a price of $40,000 withthe options they want. They have choices:Lease, Buy with a zero interest loan from the dealer, and buy with a $2,000rebate and borrow the money from the credit union.A. Lease: With an initial payment of $3,300, due at signing, they canlease the car for 3 years at $324 per month. At the end they have the option to purchase the car for $30,000. The cost of tags and sale tax is coveredby the dealer.B. Zero Interest: If they decide to buy, they have the option of a zero interest loan for 3 years.C. $2,000 Rebate: If the decide to take the rebate, the loan from the credit union has an annual rateof 6% for 5 years. In both cases of purchase, the cost of sales tax and license tags total $3,300. They plan to keep the car for 12 years. Which option has the lowest present valuecost? They decided to use 6% as thediscount rate.

James and Corrine are considering what to do about purchasing a new car. They pla They have choices: Lease, Buy with a zero interest loan from the dealer, and buy with A. Lease: With an initial payment of $3,300, due at signing, they can lease the car fo B. Zero Interest: If they decide to buy, they have the option of a zero interest loan for C. $2,000 Rebate: If the decide to take the rebate, the loan from the credit union has In both cases of purchase, the cost of sales tax and license tags total $3,300. They plan to keep the car for 12 years. Which option has the lowest present value co a Convert the 6% annual discount rate to a monthly rate and find the present Value of t b Calculate the Monthly Payment for the 3 year, zero interest loan for $40,000. c Create a cash flow time line for the purchase with a 3 year, zero Interest Loan. Don't d Calculate the Present Value of the purchase of the car with the zero interest loan wit e If James and Corrine, take the rebate of $2,000, they will have a loan of $38,000. Ca is used to reduce the amount of the loan. James and Corrine must still pay the $3,30 f If James and Corrine, take the rebate of $2,000, they will have a loan of $38,000. Ca is used to reduce the amount of the loan. James and Corrine must still pay the $3,30 g Calculate the Present Value of the purchase of the car with the $2,000 rebate and a h What should James and Corrine do? Why? g a new car. They plan to acquire a new 2016 Toyota Highlander. The dealer has quotes a price of $40,000 with he dealer, and buy with a $2,000 rebate and borrow the money from the credit union. ey can lease the car for 3 years at $324 per month. At the end they have the option to purchase the car for $30,00 a zero interest loan for 3 years. m the credit union has an annual rate of 6% for 5 years. s total $3,300. west present value cost? They decided to use 6% as the discount rate. the present Value of the lease option. The $3,300 up-front fee includes the $3,300 for tax and tags. n for $40,000. o Interest Loan. Don't forget the $3,300 for tax and tags. zero interest loan with the monthly equivalent of the 6% discount rate a loan of $38,000. Calculate the payment for a loan of $38,000 at 6% interest for 5 years. The rebate of $2,000 must still pay the $3,300 for tax and tags in period zero a loan of $38,000. Calculate the payment for a loan of $38,000 at 6% interest for 5 years. The rebate of $2,000 must still pay the $3,300 for tax and tags in period zero $2,000 rebate and a 6% loan price of $40,000 with the options they want. ase the car for $30,000. The cost of tags and sale tax is covered by the dealer. he rebate of $2,000 he rebate of $2,000