ordano is per purce follo eds a car for the next six years. He is curto 100 or lease it from CheapLease Inc. If Toby deci s. He is currently Toby Gordano is starting school in September, and needs a car for the ne deciding to either purchase a used car for $25,000 or lease it from Che car, he would incur the following costs per year: oby decides to buy Maintenance Insurance Car Wash Gas $2,100 1,800 800 900 t of $8,700 per year On the other hand, Toby can lease the car under a six-year agreement at a lease cost of $8700 As part of the lease, CheapLease Inc. would provide all the required maintenance. Toby w responsible for the cost of car washes, gas and insurance. enance. Toby would still be Assume Toby has a required rate of return of 12%. Required a) Using the NPV method, which alternative should Toby choose? ment at which Toby would be indifferent to purchasing or leasing the car. Determine the lease payment at b) Determina