Financial Management – FINE 6020
To answer this question, we should find the PV of both options, and compare them. Since we are purchasing the car, the lowest PV is the best option. The PV of the leasing option is the PV of the lease payments, plus the $2,400. The interest rate we would use for the leasing option is the same as the interest rate of the loan. The PV of leasing is: ................
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