1. You are interested in a new Ford Taurus. After visiting your Ford dealer and doing your research on the best leases available, you have three options.
2. (i) Purchase the car for cash and receive a cash rebate of $1,900 from Dealer A. The price of the car is $19,000. 
3. (ii) Lease the car from Dealer B. Under this option, you pay the dealer $550 now and $225 per month for each of the next 36 months (the first payment of $225 occurs 1 month from now). After 36 months, you can buy the car for $10,900. 
4. (iii) Purchase the car from Dealer C, who will loan you the full purchase price of the car for a 36-month interest-free loan with monthly payments. The price of the car is $19,000. Suppose the market interest rate is 4%.

Answer rating: 100% (QA)

Option 1 Net Cost 19000 1900 Opti... View the full answer