Assume that all interest rates indicated are fixed, compounded, and annual, unless otherwise indicated. State any assumptions made.

1. What are some of the economic factors you consider in deciding whether to lease a car, to buy one, or to do neither?

2. A cash flow diagram indicates the amounts paid or received by a stakeholder. For the operations and maintenance of a typical transit system in your community, list the amounts typically encountered in the cash flow stream over the life of the system. Categorize these amounts by their direction (cost versus benefit), the frequency of incurrence (one-time versus periodic versus recurring), and the party that incurs the cost or receives the benefit (agency versus system user versus community).