Perform a decision analysis of these options.

Many automobile dealers advertise lease options for new cars. Suppose that you are considering three alternatives:

1. Purchase the car outright with cash.

2. Purchase the car with 20% down and a 48-month loan.

3. Lease the car.

Select an automobile whose leasing contract is advertised in a local paper. Using current interest rates and advertised leasing arrangements, perform a decision analysis of these options. Make, but clearly define, any assumptions that may be required.