Question: please show equations for orange boxes 62 63 C-Suppose that you have the option to buy the car with a 3 year car loan or
62 63 C-Suppose that you have the option to buy the car with a 3 year car loan or lease the car during the same period of time. The 3 year lease option will require a $3,000 down payment and monthly payments of $350. If the salvage value of the new vehicle after 3 years is $5,000 and you can invest at a rate of return of 4%, what is your best option? (Ignore your old vehicle.) Buy Personal Investment Rate Salvage Value Car Loan Payments 4% $ 5,000.00 Lease 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 BO Down Payment Monthly Payments $ $ 3,000.00 350.00 NPV of Buying NPV of Leasing Buy or Lease? 62 63 C-Suppose that you have the option to buy the car with a 3 year car loan or lease the car during the same period of time. The 3 year lease option will require a $3,000 down payment and monthly payments of $350. If the salvage value of the new vehicle after 3 years is $5,000 and you can invest at a rate of return of 4%, what is your best option? (Ignore your old vehicle.) Buy Personal Investment Rate Salvage Value Car Loan Payments 4% $ 5,000.00 Lease 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 BO Down Payment Monthly Payments $ $ 3,000.00 350.00 NPV of Buying NPV of Leasing Buy or Lease
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