Question
Use the following data: Down payment (to finance vehicle) $ 5,400 Down payment for lease $ 1,900 Monthly loan payment $ 760 Monthly lease payment
Use the following data:
| Down payment (to finance vehicle) | $ | 5,400 | Down payment for lease | $ | 1,900 | |||
| Monthly loan payment | $ | 760 | Monthly lease payment | $ | 580 | |||
| Length of loan | 48 | months | Length of lease | 48 | months | |||
| Value of vehicle at end of loan | $ | 10,000 | End-of-lease charges | $ | 950 | |||
a. What is the total cash outflow for buying and for leasing a motor vehicle with a cash price of $32,000?
b. Based on your answers in part a, would you recommend buying or leasing?
multiple choice
Buying
Leasing
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Global Finance And Development
Authors: David Hudson
1st Edition
0415436354, 978-0415436359
