OLA #10.2Natalie was offered two options for a car he was purchasing: Lease option: Pay lease amounts of $450 at the beginning of every month for 5 years. At the the end of 5 years, purchase the car for $14,000. Buy option: Purchase the car immediately for $30,000. The money is worth 7.70% compounded monthly. a. What is the Discounted Cash Flow (DCF) for the lease option? b. Which is the better option? Lease Option Buy Option Kindly use all the decimals DO NOT ROUND

OLA #10.2 Natalie was offered two options for a car he was purchasing: Lease option: Pay lease amounts of $450 at the beginning of every month for 5 years. At the the end of 5 years, purchase the car...

OLA #10.2

Natalie was offered two options for a car he was purchasing:

Lease option: Pay lease amounts of $450 at the beginning of every month for 5 years. At the the end of 5 years, purchase the car for $14,000.

The money is worth 7.70% compounded monthly.

a. What is the Discounted Cash Flow (DCF) for the lease option?

b. Which is the better option?

Lease Option

Buy Option

Kindly use all the decimals DO NOT ROUND

Jun 05, 2022