Please show your work by submitting a Word, Excel, or JPEG file in "Project 2 - Show Your Work". Using the Excel Template in the Week 11 Folder really will help you answer this question correctly.

LEASE FACTS:

Down Payment $ 1,500.00

Lease Term 36 Months

Lease Payments $ 189.00 Per Month

Buy Out Price - End of Lease $ 12,000.00

Market Loan Rate 8%

Sales Tax 6.75%

Title Fee $ 15.00

Your Highest Credit Card Rate 15.00%

Outright Purchase of Car (Before tax and title) $17,000.00

Assume that the lease and buy are both reasonable values and that you are paying a 15% interest rate (after tax) on credit card debt. You also plan to keep the vehicle beyond the lease term. In other words, you would exercise the purchase option at the end of the lease term.

Assume further that you do not take advantage of the opportunity to pay off credit card debt with the monthly lease savings. What is the NPV of the lease?

A. -19,045

B. -17,900

C. -23,767

D. -28,299