Question: Please show your work by submitting a Word, Excel, or JPEG file in Project 2 - Show Your Work. Using the Excel Template in the
| 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 | Lower than the example in the lecture but use this |
| Your Highes Credit Card Rate | 15.00% | |
| Outright Purchase of Car (Before tax and title) | $17,000.00 | |
Assume that you can buy the vehicle for $17,000 before tax and title. The NPV of the car if you lease will be:
| A. | -18,229 | |
| B. | -20,987 | |
| C. | -17,365 | |
| D. | -10,500 |
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