Q3. A telephone system can be purchased for $7550 , with a disposable/ resale value of $1500 after 5 years . Alternatively, a leasing agreement requires payments of $ 160 at the beginning of each month for 5 years. If money is worth 13 % compounded monthly, should the telephone system be leased or purchased? (Hint: Use EAR ( Use all decimal numbers ) for finding NPV of Purchase option, and BGN mode for Lease option) (4 marks)

Lease Option :

Purchase Option :