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decsion? Consider the folowing stanaria: Should Eli Lease er Purchase? purthase the whicle. coit,...

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Question

Accounting

decsion? Consider the folowing stanaria:
Should Eli Lease er Purchase?
purthase the whicle.
coit, and monthly payments of $352 aver the three-year term of the clesed-end iease. Tha Prius will have a residual valox of
$7,,5 B.
price, and make monthly payments of $529 an a three-rear iban that chargen 4sk interest.
Be aware that funds usid as down parments and ascurity deposits incur an apporturity cest of 4 th, as they could have earned
intarest for El owar tha pariod of the llase or ioan.
to the fralesest whele dellar]
AUTOHOBIL LEASE-VERSUS DURCHASE-AMALYS1S
Amount
(s)
LEASE
Item Description
Intal Payment
Based on this analysis, Eli shoud:
Use the loan to purchese the Prius, because is betal cast is lesi than the total cool of a lease transaction
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