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You can buy a car for $25,000 and sell it in 5 years for $5,000. Or you can lease the car for 5 years for

You can buy a car for $25,000 and sell it in 5 years for $5,000. Or you can lease the car for 5 years for $5,000 a year. The discount rate is 10 percent per year. a. Which option do you prefer? b. What is the maximum amount you should be willing to pay to lease rather than buy the car?

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