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Use the following data: Down payment (to finance vehicle) $ 7,000 Down payment for lease $ 2,700 Monthly loan payment $ 980 Monthly lease payment
Use the following data:
| Down payment (to finance vehicle) | $ | 7,000 | Down payment for lease | $ | 2,700 | |||
| Monthly loan payment | $ | 980 | Monthly lease payment | $ | 740 | |||
| Length of loan | 48 | months | Length of lease | 48 | months | |||
| Value of vehicle at end of loan | $ | 13,200 | End-of-lease charges | $ | 1,350 | |||
a. What is the total cash outflow for buying and for leasing a motor vehicle with a cash price of $41,000
b. Based on your answers in part a, would you recommend buying or leasing?
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Finance Theory And Practice
Authors: Anne Marie Ward
2nd Edition
1907214259, 978-1907214257
