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You are considering two home security companies for your new house. The first company offers free installation and equipment, but will charge you $549.00 per
You are considering two home security companies for your new house. The first company offers free installation and equipment, but will charge you $549.00 per year forever. The second company charges $876.00 for installation, but will charge you $272.00 per year forever. Assume that payments are at the END of the year. Your personal interest rate is 5.00% per year, and you want to evaluate each proposal. What is the PV of the paid installation? (This answer will be a NEGATIVE as you are spending cash for the system without receiving any payoffs) Submit Answer format: Currency: Round to: 2 decimal places
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