You are thinking about buying that motorcycle youve always wanted to buy. The motorcycle costs $12,000 new. You expect to ride it for four years, and you think you can sell it or trade it in for 30% of its original value then. The dealer also offers you what they say is an awesome lease deal for four years - $199 per month at a 4% APR. Should you lease or buy, assuming you are making the decision on a purely financial basis? Show your calculations for each possibility and state why you think one is better. Ignore taxes. (Hint: under a lease you simply make the payments and then walk away from the deal. If you purchase the motorcycle, you have to buy it and hope you can sell it later. A lease versus buy decision involves taking a look at the total net cost after factoring in the time value of money.) (1 point for laying it out correctly, 1 point for getting the numbers right and 1 point for making the right decision.)