PLEASE ANSWER BOTH QUESTIONS

For this problem you can ignore taxes. Assume a car costs $28,000 today and you expect to be able to sell it in 6 six years for $8,000. You also can assume the car will be under warranty for the full six years. Alternatively, you can lease a car for 3 years for $400 per month, and expect to be able to then lease another car for the following 3 years, also at $400 per month. Ignoring interest rates and discounting, which alternative is more costly? Now, assume interest rates are 4%. What are the present values of the two alternatives? Which is more costly?

What is the rough increase in your three year lease monthly payment if you upgrade the sound system to the version that costs an extra $720?