CHAPTER 3: RATES OF RETURN
Show that if you have a three-year lease that gives you the right to buy your current car at a fixed price, say $9,000, then this is like having insurance. SOLUTION: Leasing with an option to buy means that at the end of 3 years, if you want to own the car, you have a choice. You could either exercise the option to buy at $9,000, or buy a three ... ................
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