Question: Please submit an EXCEL FILE for answer, thanks The Financial Advisor is a weekly column in the local newspaper. Assume you must answer the following

Please submit an EXCEL FILE for answer, thanks

Please submit an EXCEL FILE for answer, thanks The Financial Advisor is

The Financial Advisor is a weekly column in the local newspaper. Assume you must answer the following question. "I need a new car that I will keep for 5 years. l have three options. I can (A) pay $25,999 now, (B) make monthly payments for a 9% 5-year loan with 0% down, or (C) make lease payments for $470 per month for the next 5 years. The lease option also requires a security deposit of $1 ,500. What should I do?" Assume that the number of miles driven matches the assumptions for the lease, and the vehicle's value after 5 years is $7,000. Remember that lease payments are made at the beginning of the month, and the salvage value is received only if you own the vehicle. (a) Develop a choice table for nominal interest rates from 0% to 50%. (you do not know what the reader's interest rate is). Please plot your equivalent uniform monthly cost vs. your nominal yearly interest rate. (b) If i=9%, use an incremental rate of return analysis to recommend which option should be chosen. Please submit an excel file

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