Suppose two customers have leased cars from a manufacturer. Their lease agreements are up, and they are considering whether to keep (and purchase at 60% of the new car price) their cars or return their cars. Two years ago, Caroline leased a car valued new at $14,500. If she returns the car, the manufacturer could likely get $10,150 at auction for the car. Frances also leased a car, valued new at $14,500, two years ago. If she returns the car, the manufacturer could likely get $7,395 at auction for the car.