Note that you need to use HST of $13\%$ for any tax calculations. Do not use PST & GST as indicated in the workbook. This assignment is based on Ontario which uses HST$.$

Case Study $1-$ Buying vs$.$ Leasing

$28$ marks

Jim has chosen the car he wants and must now decide whether to buy or lease it$.$ The car has an MSRP of $$21,977$ and a residual factor of $34\%.$ Jim negotiates a $$500$ discount and must pay the following additional costs:

$\backslash$table$[[$LeaSC QllOfe,,$],[$Term of Lease,,Monthly Payment,$],[$MSRP$,21977,$Interest Rate,$],[$Gross Capital Cost,,$1^{st}$ Payment,$],[$Trade$-$in Allowance,,HST on Down Payment $(13\%),],[$Down Payment,,$1^{st}$ Year Fees,$],[$Total Capital Reduction,,Other Fees,$],[$Net Capital Cost,,HST on Upfront $(13\%),],[$Residual Factor,,Security Deposit,$],[$Residual Value,,,$],[$Depreciation$,,,],[$Base Monthly Payment,,,$],[$Monthly HST $(13\%),,,]]$