Leave percentages with 1 decimal point. For the Proformas, you can leave as whole dollars. For the TMV and NPV problems, round to the nearest penny. Cells collored yellow are to be solved and cells colored green are to be filled in with information provided in the question You must show the excel formulas, not just the typed in value.

1DCF After deciding to acquire a new car, you can either lease the car or purchase it on a three-year loan. The car you wish to buy costs $62,000. The dealer has a special leasing arrangement where you pay $8,300 today and $700 per month for the next three years. If you purchase the car, you will pay it off in monthly payments over the next three years at an APR of 6.2 percent. You believe you will be able to sell the car for $38,000 in three years. Input area: Years for lease Payments per year Car price Lease payment today Monthly lease payment Loan APR Resale price Answers: PV of monthly lease payments Total cost of lease PV of resale price Total cost of purchase Should you purchase or lease the car? years at an APR of 6.2 percent. You believe you will be able to sell the car for $38,000 in three years. Input area: Years for lease Payments per year Car price Lease payment today Monthly lease payment Loan APR Resale price Answers: PV of monthly lease payments Total cost of lease PV of resale price Total cost of purchase Should you purchase or lease the car? Break-even present value