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Li Jun, an office administrator, is evaluating the following quotation that she received for the purchase of a printer for her office: Lease Option:
Li Jun, 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 $85 at the beginning of every month for 5 years. At the end of 5 years, make the final payment of $1,250. Purchase Option: Make a payment of $5,200 immediately. a. What is the present value of the lease option if money is worth 7.8% compounded semi-annually? $0.00 Round to the nearest cent b. Which option would be economically better? (click to select) c. What is the present value of the lease option if money is worth 10.2% compounded semi-annually? Round to the nearest cent d. Which option would be economically better? (click to select)
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a What is the present value of the lease option if money is worth 78 compounded semiannually 000 Round to the nearest cent To calculate the present va...Get Instant Access to Expert-Tailored Solutions
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