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Cody, an office administrator, is evaluating the following quotation that she received for the purchase of a printer for her office: Lease Option: Make payments
Cody, an office administrator, is evaluating the following quotation that she received for the purchase of a printer for her office:
Lease Option: Make payments of $ at the beginning of every month for years. At the end of years, make the final payment of $
Purchase Option: Make a payment of $ immediately.
a What is the present value of the lease option if money is worth compounded semiannually?
Round to the nearest cent
b Which option would be economically better
c What is the present value of the lease option if money is worth compounded semiannually?
Round to the nearest cent
d Which option would be economically better?
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