INTERMEDIATE FINANCIAL MGMT.-W/MINDTAP
INTERMEDIATE FINANCIAL MGMT.-W/MINDTAP
14th Edition
ISBN: 9780357533598
Author: Brigham
Publisher: CENGAGE L
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You are looking to lease a 2019 Subaru Forester. You have found a 36 - month closed end lease on a Forester with an MSRP of $25, 270 and a lease end purchase option of $15,667 (residual value). To get the lease you have to pay a fee of $1,765 due at signing, and the monthly payment was calculated to be $ 265. A) What is the nominal rate of return the dealership is earning on the lease? (Hint: think of the cash flows from the dealerships prospective) B) What would the lease payment be if the dealership wanted a nominal 6% compounded monthly on the lease?
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