You need a new car and are considering leasing versus buying. If the cost of capital is 4%, what option should you select and why? Lease Option: You can lease the car for 5 years starting today for $7,000 per year with the first payment being due one year from today. Purchase Option: You can purchase the vehicle today for $35,000 and resell it at the end of 5 years for $6,000.

Group of answer choices

either is acceptable because they both have a cost of $35,000

purchase the car because it effectively only costs $29,000

purchase the car and save $245.81 in equivalent annual cost

lease the car and save $245.81 in equivalent annual cost