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Specific details LEASE FACTS: Down Payment $ 1,500.00 Lease Term 36 Months Lease Payments $ 189.00 Per Month Buy Out Price - End of Lease

Specific details

LEASE FACTS:

Down Payment

$ 1,500.00

Lease Term

36

Months

Lease Payments

$ 189.00

Per Month

Buy Out Price - End of Lease

$ 12,000.00

Market Loan Rate

8%

Sales Tax

6.75%

Title Fee

$ 15.00

Lower than the example in the lecture but use this

Your Highes Credit Card Rate

15.00%

Outright Purchase of Car (Before tax and title)

$17,000.00

Assume that you can buy the vehicle for $17,000 before tax and title. The NPV of the car if you lease will be:

A.

-18,229

B.

-20,987

C.

-17,365

D.

-10,500

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