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Suppose that you have the option to lease a new Mitsubishi Eclipse, which you otherwise intend to buy. You must put $2000 down, and will

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Suppose that you have the option to lease a new Mitsubishi Eclipse, which you otherwise intend to buy. You must put $2000 down, and will make payments of $284 per month for 48 months at the beginning of each month. Upon termination, you can purchase the car for an addition payment of S7000 at lease expiration. Alternatively you can purchase the car for $21,000, which your bank is willing to fully finance at 5,8% EAR for 48 months, If you lease purchase the vehicle, how much do you save (+) or lose (-) in present value terms as opposed to using bank financing? (make your answer positive when you save, negative when you are paying more)

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