Your friend Harold is trying to decide whether to buy or lease his next vehicle....
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Your friend Harold is trying to decide whether to buy or lease his next vehicle. He has gathered information about each option but is not sure how to compare the atternatives Purchasing a new vehicle wit cost $28,000, and Harold expects to spend about $650 per year in maintenance costs. He would keep the vehicle for five years and estimates that the salvage value will be $11,100. Altematively. Harold could lease the same vehicle for five years at a cost of $3.640 per year, including maintenance. Assume a discount rate of 10 percent. Required: 1. Calculate the net present value of Harold's options. (Euture Value of St. Present Value of $1. Euture Value Annuty of S1. Present Value Annuityco($1) 2. Advise Harold about which option he should choose. Complete this question by entering your answers in the tabs below. Calculate the net present value of Marold's options. (ruture Value of $1,Present Value of $1, Future Value Annuity of $1, Present Value Annuity of $1.) Noter Une appropriate factor(s) from the tables provided. Negative amounts should be indicated tyy a minus sign. Round vour final answers to 2 decimal places
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