The Toyota Motor Company is advertising a 24-month lease of a 2014 Camry for$189payable at the beginning of each month. The lease requires $2,399down payment plus first month payment. No security deposit is required. Lessee pays maintenance, excess wear and tear, and $0.18per mile over 12,000 miles per year. Lease-end purchase option is$17,784and lease payments total$4,536. A disposition fee of$350is due at lease-end. Assuming an interest rate of6%compounded monthly, what is the total cost of leasing if you put 40,000 miles at the end of lease?

Answer rating: 100% (QA)

Cost of lease Month Cash flow PVF PVFA 6 Present v... View the full answer