Ahmed has two options to consider after getting a new job. He has the choice to either buy a car or lease it.

If he decides to buy the car, it would cost him 100,000 Dh and after four years he could sell it for 40,000. With this option, he would be required to do a major service after 2 years costing 5,000 Dh, and minor service after the 1^st and 3^rd year for 2,000 Dh.

If he decides to lease the car, he would have to pay 18,000 Dh per year. With this option, he would not need to pay for services since the leasing company will take care of that.

Assuming an MARR of 5% perform an evaluation and decide if he should lease or buy the car.

Cost of buying a car?

Cost of leasing a car?

Which alternative should be selected?

MCQ Options:

1.	-34,658
2.	-35,259
3.	-75,259 Dh
4.	-90,797
5.	Buying option
6.	-63,828 Dh
7.	-81,875
8.	Leasing option