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Your friend Harold is trying to decide whether to buy or lease his next vehicle. He has gathered information about each option but is not
Your friend Harold is trying to decide whether to buy or lease his next vehicle. He has gathered information about each option but is not sure how to compare the alternatives. Purchasing a new vehile will cost $35,500, and Harold expects to spend about $1,400 per year in mointenance costs. He would keep the vehicle for five years and estimates that the salvage value will be $4,100. Alternatively, Horold could lease the same vehicle for five years ot a cost of $4,615 per year, including maintenance. Assume a discount rate of 10 percent Pequired: 1. Calculate the net present value of Harold's options. Future Value of S1. Present Value of St. Euture Value Annulty of S1, Present Yalve Annuity of 51 ) 2. Advise Harold about which option he should choose. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Caibilate the net present value of Harold's options. (Future Value of \$1, Present Value of \$1, Future Value Annuity of \$1, Present Value Annuity of \$1.) final answers to 2 decimal piaces
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