A firm is considering purchasing or leasing a luxury automobile for the CEO. The vehicle is expected to last 4 years. You can buy the car for $90,000 upfront, or you can lease it for $1,500 per month for 48 months. The firm can borrow at an interest rate of 10% APR with quarterly compounding. Should you purchase the system outright or pay $1,500 per month?

Answer rating: 100% (QA)

To determine whether its better to purchase the car outright or lease it lets compare the total cost... View the full answer