Compare The Cost Of The Following Leasing Agreement With The Finance Charge On A Loan For The Same Time Period
Compare the cost of the following leasing agreement with the finance charge on a loan for the same time period.
The price of the car is $14,000, and its projected residual value at the end of four years is $3,000.
Capital cost reduction $1,000
Disposition charge $200
Other things being equal, one would want to finance this car rather than take this lease if the finance cost were less than