William and Shiva are going to get a new car for 8 years. William has heard that buying is always cheaper and wants to buy it for $38,000 and believes it could be sold for $11,700 in 8 years. Shiva crunched the numbers and thinks leasing for ninety-six (96) - $339 payments at the end of month is cheaper. Given with the lease option they must give the car back after 8 years, who is right based on DCF and a cost of money of 6% compounded annually?

4a) What is the DCF today of the Buy Option?

4b) What is the DCF today of the Lease Option?

4c) Who is right and why?