Answer:
Nissan's all-electric car, the Leaf
PV cost of Leaf Purchase =   $16,529
PV cost of Leasing =             $12,944.78
The company should lease the car.
Explanation:
a) Costs incurred to purchase the Leaf:
Base price                    $32,780
less Federal tax credit ($7,500)
Charging station             2,200
less 50% tax credit         (1,100)
Cash paid                  $26,380
Sales value after 3 yrs (9,851) ( $26,380 - 40% of base discounted to PV)
Net PV Investment    $16,529
b) Calculation of Discounted Present Values of Payments under Leasing, using online financial calculator:
PV (Present Value)	$12,944.78
N (Number of Periods)	3.000
I/Y (Interest Rate)	10.000%
PMT (Periodic Payment)   $4,200.00
Starting Investment	$2,500.00
Total Principal	$15,100.00
Total Interest	$2,129.50
c) The purchase of the Leaf would involve a present value cost of $26,380 after deducting all the savings from tax.  The 40% sales value of the car at the end of 3 years = $13,112 ($32,780 x 40%).  When this sales value is discounted to PV of $9,851, the PV of the car investments becomes $16,529 ($26,380 - $9,851).  On the other hand, leasing will cost in PV the sum of $12,944.78
.