Do you agree with the argument? Should the government treat kidneys like other goods and allow the market to determine price?
1 answer:
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Answer:
Ans. The total cash outflow for buying a -$34,000 vehicle is -$44,680, and for leasing the same vehicle is -$33,360
b) Based on the answers in part a), the best choice is leasing the vehicle.
Explanation:
Hi, well, we have 3 options here, 1) get a loan for a car, 2) lease that car, 3) lease and keep the car.
In order to find the cash outflow for each alternative, we have to add up all the negative cash flows, that is
Option 1 (loan)
Option 2 (just lease)
Option 3 (Lease Buying)
As you can see, the lowest outflow of money is in the case you just lease the car.
The loan option is the worst one, since you pay for a $34,000 vehicle the amount of $44,680.
Best of luck.