Question: John is considering buying a new car for $15,000 if purchased today. He also could wait to purchase the vehicle three years from now for

John is considering buying a new car for $15,000 if purchased today. He also could wait to purchase the vehicle three years from now for $18,000. If John can invest in the capital markets and earn a 10 percent return, should he purchase the vehicle today or three years from now? John himself is indifferent about whether he to buy the car today or in three years.

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