Question 2 - Time Value of Money 8 pts You have seen an Aporo Macpukapuka laptop, costing $3,254, which has all the features you desire. The store is offering a deal, which expires on 1 September 2021, whereby you would pay nothing until 1 February 2022. On 1 February 2022, you can choose to either pay the purchase price in full or use the store's easy finance plan. If you chose the finance plan, you would make 12 monthly payments of $300. The first monthly payment would be due on 1 February 2022 (finance payments are made monthly in advance). Use the rate of 1% per month as your discount rate. Tables are attached at the back. Required a) Calculate the present value of the purchase payment options on 1 February 2022: (1) pay for the purchase price in full on 1 February 2022, (ii) use the easy finance plan, and determine which payment option would be financially better. (6 marks) b) Explain why it is preferable, when comparing payment options, to sum the discounted cash flows instead of simply adding the cash payments. (2 marks) Total for this question: 8 marks