1. You are thinking about whether to buy or lease a car. If you buy the car it is 40,000 dollars up front and will last 7 years. You will have annual maintenance costs of 1000 dollars. You can trade the car in at the end of the 7^th year for 5000 dollars. In year 4 you will have to spend 4000 dollars in repair costs. Assume market rate of interest is 8%. If you lease the car, you will pay 3000 dollars down. You will make your lease payment once a year and it will be 9000 dollars for the first 3 years and 15000 dollars for the 4^th year. Maintenance and repair is included. At the end of the 4^th year you return the car. Calculate NPV for each option.