Q1. A friend of mine is graduating soon. She accepted a job offer where she will be living away from her family for the next couple of years. She is in the market looking for a new car and she needs your help in order to decide whether to buy or lease. Since she does not Inow yet if she is going to stay in the new job or not, she wants a short term commitment, two to three years She is currently looking at the 2018 Toyota Corolla. Based on the following information and the fact that her opportunity cost is 6%, your recommendation to buy or lease is needed if the decision is over two or three years. A detailed and complete analysis is required to support your claims. New 2018 Corolla LE Lease $179 per Month/36 Months /$2,878 Due at Signing OFFER DETAILS For well-qualified lessees with approved credit through Southeast Toyota Finance. Not all lessees will qualify for this payment amount. Closed-end lease on new 2018 Corolla LE model # 1852 with automatic transmission and select equipment. Adding options increases payment. $179.00 per month for 36 months. $2,878 due at signing includes $2.699 down payment and first month's payment. No security deposit required. $17,582 Adjusted Capitalized Cost is based on down payment; excludes tax, tag, registration, title and dealer fees. Dealer fees vary by dealer Monthly payments do not include applicable taxes. Lessee pays the remainder of maintenance after ToyotaCare expires, excess wear and use, and S0.18 per mile over 12.000 miles per year. Lease payments total $6.444. Disposition Fee of $350 due at lease-end. May not be combined with certain other offers. Must take delivery between 06/05/18 and 07/09/18. Assume that the same offer details above apply for 36 month lease and the milenge limit is 36.000 miles, but she won't go above the mileage limit