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Use excel and show formulas Suppose you are studying two hardware lease proposals. Option 1 costs $5,000, but requires that the entire amount be paid

image text in transcribedUse excel and show formulas

Suppose you are studying two hardware lease proposals. Option 1 costs $5,000, but requires that the entire amount be paid in advance. Option 2 requires $2000 now and $1,000 per year for the next four years. If you do an NPV analysis assuming a 12% discount rate, which proposal is less expensive? What happens if you use an 18% rate

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