Claude James, a salesman, needs a new car for use in his business. He expects to be promoted to a…
Claude James, a pedler, needs a new car for use in his business. He expects to be promoted to a supervisory job at the end of 3 years, and so his affair now is to feel a car for the 3 years he expects to be "on the pathway." The gang reimburses salesmen each month at the scold of 251iper mile driven. Claude has determined to drive a low-priced automobile. He finds, at-last, that there are three irrelative ways of obtaining the automobile:
(a) Donation for cash; the impeach is $13,000.
(b) Lease the car; the monthly impeach is $350 on a 36- month lease, payable at the end of each month at the end of the 3 year bound, the car is returned to the leasing gang.
(c) Lease the car delay an discretion to donation it at the end of the lease; pay $360 a month for 36 months; at the end of that period, Claude could donation the car, if he chooses, for $3500. Claude believes he should use a 12% cause scold in determining which resource to chosen. If the car could be sold for $4000 at the end of 3 years, which regularity should he use to obtain it?