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a) JB Heng is contemplating either leasing or purchasing a new Toyota Imperium MPV (multi-purpose vehicle). The manufacturer's suggested retail price or MSRP is $33,000. The dealer offers a 3-year leasing arrangement which requires a capital outlay of $3,300, comprising of $3,000 down payment plus $300 security deposit. The monthly payment is $494. The purchasing arrangement requires a $2,640 down payment, a sales tax of 6.5% ($2,145), plus 36 monthly payments of $784. JB estimates that the value of the car will be $17,000 at the end of 3 years. He can earn 5% annual interest on his savings and there will be a 6.5% sales tax on purchases imposed. Using the lease-versus-purchase analysis, you are required to (ignore time value of money): b) List and discuss at least 4 advantages of leasing when making a decision on either to lease or purchase. (8 marks) (Total =15 marks) a) JB Heng is contemplating either leasing or purchasing a new Toyota Imperium MPV (multi-purpose vehicle). The manufacturer's suggested retail price or MSRP is $33,000. The dealer offers a 3-year leasing arrangement which requires a capital outlay of $3,300, comprising of $3,000 down payment plus $300 security deposit. The monthly payment is $494. The purchasing arrangement requires a $2,640 down payment, a sales tax of 6.5% ($2,145), plus 36 monthly payments of $784. JB estimates that the value of the car will be $17,000 at the end of 3 years. He can earn 5% annual interest on his savings and there will be a 6.5% sales tax on purchases imposed. Using the lease-versus-purchase analysis, you are required to (ignore time value of money): b) List and discuss at least 4 advantages of leasing when making a decision on either to lease or purchase. (8 marks) (Total =15 marks)

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