Savings: $2,500 Discretionary spending: $450 per month

Option A to buy has a total cost of 22,780 dollars, up-front cost of 2,500 dollars, monthly payment of 338 dollars for 60 months, and no mileage restriction. Option B to lease has a total cost of 12,169 dollars, up-front cost of 3,925 dollars, monthly payment of 229 dollars for 36 months, and mileage restriction of 10,000 per year.

Compare the costs of buying and leasing a new vehicle.

What are the advantages of buying the car? Check all that apply.

I have enough saved for the down payment.
There are no mileage restrictions.
The price of the car is less.
The monthly payment is less.
I will own the car in five years.

Verizon communications, inc., provides the following footnote relating to its leasing activities in its 10-k report. the aggregate minimum rental commitments under noncancelable leases for the periods shown at december 31, 2010, are as follows: years (dollars in millions) capital leases operatingleases 2011 $97 $1,898 2012 74 1,720 2013 70 1,471 2014 54 1,255 2015 42 1,012 thereafter 81 5,277 total minimum 418 $ 12,633 rental commitments less interest and (86) executory costs present value of 332 minimum lease payments less current (75) installments long-term obligation $257 at december 31, 2010 (a) confirm that verizon capitalized its capital leases using a rate of 7.4 %. (b) compute the present value of verizon's operating leases, assuming an 7.4% discount rate and rounding the remaining lease term to 3 decimal places. (use a financial calculator or excel to compute. do not round until your final answers. round each answer to the nearest whole number.)