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Kelsey was offered two options for a car he was purchasing: Lease option: Pay lease amounts of $600 at the beginning of every month for
Kelsey was offered two options for a car he was purchasing: Lease option: Pay lease amounts of $600 at the beginning of every month for 6 years. At the the end of 6 years, purchase the car for $12,000. Buy option: Purchase the car immediately for $26,500. The money is worth 6.80% compounded monthly. a. What is the Discounted Cash Flow (DCF) for the lease option? The money is worth 6.80% compounded monthly. a. What is the Discounted Cash Flow (DCF) for the lease option? $0.00 E Round to the nearest cent b. Which is the better option? O Lease Option O Buy Option
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