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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 altematives. Purchasing a new vehicle will cost $32,000, and Harold expects to spend about $1.050 per year in maintenance costs. He would keep the vehicle for five years and estimates that the salvage value will be $12.700. Alternatively. Harold could lease the same vehicle for five years at a cost of $4,160 per year, including maintenance. Assume a discount rate of 12 percent Required: 1. Calculate the net present value of Harold's options. (Future Valus of \$1. Present Valued of 51 . Future Value Annuify of $1, Present Value Annuty of \$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 Harold's options. (Future Value of $1, present Value of $1, Future Value Annuity of \$1, Present Value Annuity of $1.) Note: Use appropriate factor(s) from the tables proyided. Wegative amounts should bo indicited by a minus sign. Round your final answers to 2 decimal places. Complete this question by entering your answers in the tabs below. Advise Harold about which option he should choose

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