Many individuals prefer to lease their vehicles

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Many individuals prefer to lease their vehicles rather than buy them. A new Audi Q7 can be leased for a down payment of $5,489 and 36 end-of-the -month payments of $549. Alternately, the car can be purchased for cash for $48,000 and a Q7 with about 40,000 miles is estimated to have resale value of $18,000 in three years time from now. Should one lease or buy if opportunity cost is 4.08 % APR? Show all your work.

Reference no: EM131449947

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