11. Stephen lives in Killarney, MB. He plans to lease a car that costs $62 301.89 (including all charges and taxes) to buy. After the lease ends, he will buy the car for its residual value. He has $12 000 for a down payment. There are 36 monthly payments of $500 plus taxes. The residual value is $35 754.21 including taxes. The total tax in Manitoba is 13% Which option will cost less? Show your work.

11. Stephen lives in Killarney, MB. He plans to lease a car that costs $62 301.89 (including all charges and taxes) to buy. After the lease ends, he will buy the car for its residual value. He has $12 000 for a down payment. There are 36 monthly payments of $500 plus taxes. The residual value is $35 754.21 including taxes. The total tax in Manitoba is 13% Which option will cost less? Show your work.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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A 110. Subject:- finance
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