Calculate the net present value

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You can lease a video store in another town. The net yearly cash flow from operations after deducting lease payments is estimated at $45,000 (net) from year 1 to year 10.

Option 1: Purchase

If you want to make 25% on your money, should you buy the video store?

Calculate the net present value = $

Option 2: Leasing

If you want to make 25% on your investment, should you lease the video store?

Calculate the present value = $

Reference no: EM133206129

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