Should Mai Lease or Purchase? Mai is considering the purchase of a Ford F-150 Pickup and has negotiated a final price of $27,690. She's trying to decide whather to lease or purchase the vehicle. - If the leases, thell have to pay a $500 security deposit, a capital cost reduction (down payment) equal to 10% of the vehiele's cout, and monthly payments of $375 over the four-year term of the closed-end lease. The truck will have a residual value of 511,076. - On the other hand, if the buys the truck, shel have to make a 10\% down payment, pay sales tax equal to a\%, of the vehicle's price, and moke monthly payments of 5563 on a four-year loan that charges 4% interest. - Be aware thot funds used as down payments and security deposits incur an opportunity cost of 4%, as they could have earned interest for Mai over the penod of the lease or loan. Use the automoblie lease-versus-purchase analysis worksheet that follows to determine the total cost of both the laase and the purchase and then recommend the best strategy for Mai. To complete the worksheet, enter the appropriate values in their corresponding blanks. (Note: Round each value to the nearent whole dollan.) AUTOMOBILE LEASE-VERSUS PURCHASE-ANALYSIS Based on this analysis, Mai should: Use the loan to purchase the truck, because its total cost is less than the total cost of a lease transaction Use the lease to purchase the truck, because its total cost is greater than the total cost of a purchase transaction Use the lease to purchase the truck, because its total cost is less than the total cost of a loan transaction