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A company wants to decide between two leasing options for warehouse for the next 4 years.Option A will require a deposit of $40,000 (refundable after
A company wants to decide between two leasing options for warehouse for the next 4 years.Option A will require a deposit of $40,000 (refundable after the lease period) and a payment of $4,500 to be paid at the end of each month for the next 47 months.Option B has no down payment and requires a payment of $5,000 at the beginning of each month for the next 48 months.The estimated interest rate for the company is 9% per year.Find the net present value of the total cost of each option.
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