Decide between two mobile phone carriers

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Reference no: EM131972701

Tyler is trying to decide between two mobile phone carriers. Carrier A requires him to pay ?$400 for the phone and monthly charges of ?$40 for 18 months. Carrier B wants him to pay $300 for the phone and monthly charges of $60 for 12 months. Assume he will keep replacing the phone after his contract expires. His cost of capital is 8?%. Based on cost? alone, which carrier should he ?choose?

Reference no: EM131972701

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