Use the following data:
|Down payment to finance vehicle||$5,600||Down payment for lease||$2,000|
|Monthly loan payment||$780||Monthly lease payment||$600|
|Length of loan||48 months||Length of lease||48 month|
|Value of vehicle at end of loan||$10,400||End-of-lease charges||$1,000|
a. What is the total cash outflow for buying and for leasing a motor vehicle with a cash price of $33,000?
|Total Cash Outflow|
b. Based on your answers in part a, would you recommend buying or leasing?