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Product A costs $65,000 now, with annual yearly fees of $6,500 at the end of years 1, 2, and 3. Product B, is available for
Product A costs $65,000 now, with annual yearly fees of $6,500 at the end of years 1, 2, and 3. Product B, is available for an annual rental of $18,000 now, and $20,000, $22,000, and $24,000 at the ends of years 1, 2, and 3. After 4 years, a completely new platform will be required. The company's minimum attractive rate of return (interest rate) is 14% per year. What are the future worth of costs of A and the future worth of costs of B?
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