Question
Please use the following facts to analyze the next two questions: Facts and Assumptions: Lease Term in Months 24 Lease Down Payment $ 500.00 Monthly
Please use the following facts to analyze the next two questions:
| Facts and Assumptions: | |
| Lease Term in Months | 24 |
| Lease Down Payment | $ 500.00 |
| Monthly Lease Payments | $ 300.00 |
| Sales Tax Rate | 8% |
| Lease Buyout at End | $ 15,000.00 |
| Title Fee | $ 25.00 |
| Car Loan Market Rate | 7% |
| Outright Purchase Price Before Tax and Title | $ 19,500.00 |
What is the NPV of the lease?
What would it cost you to buy the car today if you were paying cash? .
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International Financial Management
Authors: Geert Bekaert, Robert J. Hodrick
4th International Edition
013284298X, 9780132842983
