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Suppose you are stying two hardware lease proposals. Option 1 costs $4000, but requires that the entire amount be paid in advance.

Suppose you are stying two hardware lease proposals. Option 1 costs $4000, but requires that the entire amount be paid in advance. Option costs $5000, but the payments can be made $1000 now and $1000 per year for the next four years. If you do an NPV analysis assuming a 14% discount rate, which proposal is less expensive? What happens if you use an 8% rate?
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Finance - 8350622.xls

Suppose you are stying two hardware lease proposals. Option 1 costs $4000, but requires that the entire amount be paid in advance. Option costs $5000, but the
payments can be made $1000 now and...

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