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On behalf of your employer, you are considering buying some airplane parts. You can make payments of $1,200 per month or you can buy the
On behalf of your employer, you are considering buying some airplane parts. You can make payments of $1,200 per month or you can buy the equipment for $50,000 outright. Your boss wants to make payments but you want to buy the equipment outright. Prove that your decision is the better option. The annual interest rate is 6%. Assume that the equipment will be obsolete in five years.
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