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Q3. A telephone system can be purchased for $7200 , with a disposable/ resale value of $1200 after 5 years . Alternatively, a leasing agreement

Q3. A telephone system can be purchased for $7200 , with a disposable/ resale value of $1200 after 5 years . Alternatively, a leasing agreement requires payments of $ 175 at the beginning of each month for 5 years. If money is worth 13.5 % compounded monthly, should the telephone system be leased or purchased?

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