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You are trying to decide between two mobile phone carriers. Carrier A requires you to pay $ 2 1 5 for the phone and then
You are trying to decide between two mobile phone carriers. Carrier A requires you to pay $ for the phone and then monthly charges of $ for months. Carrier B wants you to pay $ for the phone and monthly charges of $ for months. Assume you will keep replacing the phone after your contract expires. Your cost of capital is APR compounded monthly. Based on cost alone, which carrier should you choose?
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