When the company uses a minimum attractive rate of return

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A-1 Box Company is planning to lease a computer system that will cost (with service) $15000 in year 1, $16500 in year 2, and amounts increasing by 10% each year thereafter. Assume the lease payments must be made at the beginning of the year and that a 5-year lease is planned. What is the present worth (year 0) if the company uses a minimum attractive rate of return of 16% per year?

Reference no: EM13218411

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