Horizon Ford advertises that it will sell you a Taurus for $24,000 or lease it to you.
Question:
Horizon Ford advertises that it will sell you a Taurus for $24,000 or lease it to you. To lease it, you must make a down payment of $3,000 and agree to pay $3,000 at the end of each of the next two years.
After the last lease payment, you may buy the car for $20,000. If you plan to keep the car until it falls apart (at least a decade) and the interest rate is 10%, which approach has a lower present value of costs?
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The present value of the cash p...View the full answer
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Mugdha Sisodiya
My self Mugdha Sisodiya from Chhattisgarh India. I have completed my Bachelors degree in 2015 and My Master in Commerce degree in 2016. I am having expertise in Management, Cost and Finance Accounts. Further I have completed my Chartered Accountant and working as a Professional.
Since 2012 I am providing home tutions.
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