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Consider a Car Dealership Advertises a Three-Year Lease at $250

Question 10

Multiple Choice

Consider a car dealership advertises a three-year lease at $250 per month.When you arrive to apply,you discover that the lease requires a down payment of $3600 dollars.You will undertake the lease if


A) you value the lease at least $350 per month.
B) you value the lease at least $250 per month, the $3600 is a sunk cost.
C) you value the lease less than $350 per month.
D) you value buying a new car at $400 per month.

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