You have decided to buy a new car now and your main criteria is total cost over the next 3 years. You have taken Eng Econ, so you decide to do an NPV Analysis. You have two options which are leasing and financing the car.

What is NPV of each option? Which option is the best option if you want to minimize the cost of your new car? Assume you drive 20,000 miles each year. Also, assume that if you drive more than 12,000 miles, the lease company charges you at the end of that year. Assume that your monthly rate is 0.25%. Calculate the NPV for both the Finance and Lease options below and explain which is the Best Option.

I will rate highly for a complete and correct answer with details. Thank you very much

Finance NPV Monthly payment(at the beginning of each month) $350 Insurance(Pay at the beginning of each month) $80 Salvage value $8,000 Finance NPV Monthly payment(at the beginning of each month) $350 Insurance(Pay at the beginning of each month) $80 Salvage value $8,000