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You have two financing choices: lease or borrow& buy. You can obtain a four-year loan at 6% annual rate (which means 0.5% monthly rate)for the entire purchase price of the car. A four-year lease (equal monthly lease paymentsstart immediately) requires a down payment of $4,000. The market value of the car isexpected to depreciate 48% in four years. What is the break-even lease payment? Assumetaxes are irrelevant to this problem

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Corporate Finance, Finance

Category:- Corporate Finance
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