In: Finance
if you decide to buy a Ferrari it will cost $200000 after 4years you could sell it for $60000. You would have to do a major service after 2 years costing $8000 and a minor service after 1st and 3rd year for $4000.
if you decide to lease the Ferrari you would pay $30000 per year. You dont need to pay for services since the leasing company will take care of it.
Assuming MARR of 10% perform an evaluation if you should lease or buy the Ferrari using PW, EAC and IRR?