Solution-What is the value if they lease

What is the value if they lease

Reference no: EM132959715

Question - A database marketing firm can lease its computer equipment with beginning-of-quarter payments of $10,000 for three years. Alternatively, it can purchase the equipment for $131,200 with an expected resale value after three years of $33,000. Interest rate is 9% compounded quarterly.

a) What is the value if they lease?

b) What is the value if they purchase?

c) Which option do you prefer and how much better in dollars is your chosen alternative?

Reference no: EM132959715

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What is the value if they lease

Reference no: EM132959715

Reference no: EM132959715

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