Determining Terms of Automobile Leases (Requires Spreadsheet)

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MBA6203-Case12-37-Template.xlsx

Part a (Base Case)

Selling Price
Age 1 year 2 years 3 years 4 years 5 years
Resale Price
Down Payment HINT: The down payment reduces the present value (PV) when calculating the lease payment.
Cost of Capital
Monthly Cost of Capital 0.0%
Lease Calculations 2yr lease 3yr lease 4yr lease 5yr lease
Lease Term in Months 24 36 48 60
Lease Payment

&F