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4. Which of the two options below has the lowest Capital Cost? Option A: Pay a software provider $450,000 today and an additional $20,000 each

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4. Which of the two options below has the lowest Capital Cost? Option A: Pay a software provider $450,000 today and an additional $20,000 each year, starting one year from now, for a software license that lasts an infinite period of time. Option B: Pay a software provider $150,000 today plus an additional $5,000 per year for 5 years, for a software license that last 5 years. MARR = 12%

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