Please use the following facts to analyze the next two questions: Facts and Assumptions: Lease Term in
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 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?Round you answer to the nearest whole number.Do not use $, commas, or decimal points and enter as apositivenumber. For example, -$34,567.50 would be entered as 34568.
What would it cost you tobuy the car today if you were paying cash?Round you answer to the nearest whole number.Do not use $, commas, or decimal points and enter as a positive number. For example, $34,567.50 would be entered as 34568.
Intermediate Accounting
ISBN: 978-0470161012
9th Canadian Edition, Volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield.