Question

nissans all electric car, the leaf, has a base price of P 1,606,220 in the philippines, but it is aligible for a P367,500 estate tax credit. A consulting engineering company wants to evaluate the purchase or lease of one of the vehicles for use by its employeed traveling to job sites in the local area. The cost for leasing the vehicle will be P 205,800 per year (payable at the end of each year) after an initialization charge of P 122,500 paid now. If the company purchases the vehicle, it will also purchase a homecharging station for P 107,800 that will be partially offset by a 50% tax credit. If the company expects be able to sell the car and charging station for 40% of the base price of the car alone at the end of 3 years should the company purchase or lease the car? Use an interest rate of 13% per year and annual worth analysis.

Answer 1