Use the following data: a. What is the total cash outflow for buying and for leasing a motor vehicle with a cash price of 33,000 Based on your answers in part a, would you recommend buying or leasing

a. The total cash outflow for buying a motor vehicle with a cash price of $33,000 would be: Down payment = $5,600 Loan payment per month x 48 months = $780 x 48 = $37,440 Value of vehicle at end of loan = -$10,400 Total cash outflow = Down payment + Loan payments - Value of vehicle at end of loan = $5,600 + $37,440 - $10,400 = $32,640 The total cash outflow for leasing a motor vehicle with a cash price of $33,000 would be: Down payment = $2,000 Lease payment per month x 48 months = $600 x 48 = $28,800 End-of-lease charges = $1,000 Total cash outflow = Down payment + Lease payments + End-of-lease charges = $2,000 + $28,800 + $1,000 = $31,800 b. Based on the answers in part a, I would recommend leasing as the total cash outflow is lower than buying. However, it's important to consider other factors such as mileage restrictions and the vehicle's condition at the end of the lease before making a final decision.