5.6 Show What You Know - Buying vs Leasing A Vehicle /22 1. Tyler is a contractor in Winnipeg and needs a new truck for his business. The total purchase price is $59 300.45. He has $5000 saved for a down payment. He needs to decide whether he should buy or lease his vehicle. When you buy or lease a new vehicle you need to pay Federal and Provincial sales tax. Buying Option: O The loan for the purchase includes the taxes and must be repaid in 48 monthly payments of $1195.49 plus the down payment. Leasing Option: O There are 48 monthly payments of $720.25 plus taxes plus the down payment. O The purchase price at the end of the lease is $27 100. a. What is the total cost to buy the truck? b. What is the monthly lease payment including taxes? c. What is the total cost to lease for 4 years?

5.6 Show What You Know - Buying vs Leasing A Vehicle /22 1. Tyler is a contractor in Winnipeg and needs a new truck for his business. The total purchase price is $59 300.45. He has $5000 saved for a down payment. He needs to decide whether he should buy or lease his vehicle. When you buy or lease a new vehicle you need to pay Federal and Provincial sales tax. Buying Option: O The loan for the purchase includes the taxes and must be repaid in 48 monthly payments of $1195.49 plus the down payment. Leasing Option: O There are 48 monthly payments of $720.25 plus taxes plus the down payment. O The purchase price at the end of the lease is $27 100. a. What is the total cost to buy the truck? b. What is the monthly lease payment including taxes? c. What is the total cost to lease for 4 years?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter14: Pricing Techniques And Analysis

Section: Chapter Questions

Problem 1.1CE: What life cycle cost concept begins raising concerns by year 5 with any electric vehicle (EV)? If...

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