Question
Use the following data: Down payment (to finance vehicle) $ 5,500 Down payment for lease $ 500 Monthly loan payment $ 430 Monthly lease payment
Use the following data:
| Down payment (to finance vehicle) | $ | 5,500 | Down payment for lease | $ | 500 | |||
| Monthly loan payment | $ | 430 | Monthly lease payment | $ | 450 | |||
| Length of loan | $ | 60 | months | Length of lease | $ | 60 | months | |
| Value of vehicle at end of loan | $ | 4,500 | End-of-lease charges | $ | 400 | |||
a. What is the total cash outflow for buying and for leasing a motor vehicle with a cash price of $24,000?
| Buying | |
| Leasing |
b. Based on your answers in part a, would you recommend buying or leasing?
-
Leasing
-
Buying
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Technical Analysis Of Stock Trends
Authors: Robert D. Edwards, John Magee, W.H.C. Bassetti
9th Edition
0814408648, 978-0814408643
