Contact an automobile dealership and find out the full out-of-pocket cost of purchasing a specific model of car if you were to pay cash for it. Also find out the details of the costs that are associated with leasing the same model car. Answer the following questions.
(a) What terms and conditions are associated with the lease? In other words, specify the lease term, residual values and whether they are guaranteed by the lessee or not, the lessor’s implicit interest rate, any purchase options, etc.
(b) What cash flows are associated with the lease?
(c) Which do you think is the better deal? Briefly explain.

  • CreatedAugust 23, 2015
  • Files Included
Post your question