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##### Down Payment

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Down Payment;\$ 1,500.00;Lease Term;36;Months;Lease Payments;\$ 189.00;Per Month;Buy Out Price;\$ 12,000.00;Market Loan Rate;8%;Sales Tax;6.75%;Title Fee;\$ 15.00;Allowed Miles;36,000;Miles;Overage Miles Fee;\$ 0.15;Per Mile;Excess Wear & Tear Fee Applies;1.;Assume that you can buy the vehicle for \$17,000 before tax and title.;What is the NPV of the car if you lease?;What is the NPV of the car if you buy it?;(Round up to the nearest dollar amount. DO NOT use \$, commas, or decimal points) (Example \$-23,345.50 is entered as -23346);2.;Explain to me the relationship between the NPV of the lease versus the outright purchase. What does it mean? Is the lease a good value compared to buying outright?;3.;For the following questions, 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.;3. Assume for this question that you take advantage of the opportunity to pay off credit card debt with the monthly lease savings.;What is the NPV of the lease?;What is the NPV of buying it outright?;4. Assume for this questions 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?;What is the NPV of buying it outright?;(Round up to the nearest dollar amount. DO NOT use \$, commas, or decimal points) (Example \$-23,345.50 is entered as -23346);Additional Requirements;Level of Detail: Show all work;Other Requirements: I need to show all of the work in an excel file.

Paper#26485 | Written in 18-Jul-2015

Price : \$27