Use the Lease Versus Purchase Analysis Worksheet to determine what the most cost effective solution would be in regards to leasing or purchasing the 2011 Ford Fiesta in this advertisement.
2011 Ford Fiesta in this advertisement.
All of the values needed to perform your lease vs. purchase analysis are given in the advertisement for the 2011 Ford Fiesta SEL.
Reference this advertisement often and carefully so all values, and consequently calculations, in your analysis worksheet are correct.
*Please note that this advertisement is not real and has been created for the purposes of this assignment.
Automobile Lease Vs Purchase Analysis Worksheet
In this worksheet there are 18 line items that must have a value listed in the far right column of your worksheet. The title of this column is labeled “Amount.”
There will be one exception where the value will not be listed in the same row as the line item. This exception is item 14. The first cell in the “amount” column will be locked. To calculate the terms of the monthly loan payment as listed in item 14, first give values for 14a, 14b, and 14c. After listing those values, your monthly loan payment will be automatically calculated in the cell that follows your “interest rate” value.
For future reference, you can use online calculators like Edmunds.com when determining what your monthly car payment would be.
The formulas for items 1, 5, 7, 9, 13, 14, 15, 16, and 18 should already be assigned in your excel worksheet.
It may be helpful to reference the worksheet on page 100 of your text as you complete this assignment.
Lease or Purchase the Ford Fiesta
The two most important calculations in your worksheet will be in item 9: total cost of leasing, and item 18: total cost of purchasing.
If the value of the total cost of leasing is less than the value of the total cost of purchasing ,then leasing is preferred; otherwise, purchasing the Ford Fiesta is the best solution.
At the bottom of your worksheet there will be a space provided where you are expected to list whether it is best to lease or purchase the Ford Fiesta.
Please upload your worksheet after all values are given and calculations are listed, as well as the final decision stated.