Using the attached exhibit and the information below, what is the net cost of purchasing...
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Accounting
Using the attached exhibit and the information below, what is the net cost of purchasing this vehicle? To answer the question, use the following assumptions: -The price of the car is $20,000. -The down payment required is $2,000 -The security deposit required is $500 -The sales tax rate is 10.25%. -GAP insurance on the lease is $300 -Interest lost or foregone is computed using a 4% after tax rate of return (use in Step 4) -The interest rate on the lease and loan is 9% (use in Step 6*). -The lease and loan terms are both 36 months. -Your resale/trade-in value for your vehicle is $6,000 -Disposition fee: $250 -Lease Payment: $325/month -Purchase Payment: $360/month
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