You have just graduated from AIC and your college "clunker" died immediately after receiveing your diploma. You head to the BMW dealership and look at a brand new BMW 330xi turbo charged coupe. You can buy the care now for $42,000. You will hold the car for 5 years and will sell it at the end of the 5 year period for $10,500. You can lease the car for $7,000.00 per year. Assume a discount rate of 12%. Using EAC, should you lease or buy the car?

I wouldn't touch this with a barge pole as the insurance alone would be crippling straight out of college ;)

Ps as this is homework, please refer to this announcement: https://www.askmehelpdesk.com/finance-accounting/announcement-font-color-ff0000-u-b-read-first-expectations-homework-help-board-b-u-font.html