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You have the opportunity to rent or buy furniture for a two year period. Your two options are as follows: a. Rent it with a

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You have the opportunity to rent or buy furniture for a two year period. Your two options are as follows: a. Rent it with a $450 deposit (which will be returned at the end of the two years) and $60/month rental fee. b. Buy equivalent used furniture for $2000 and sell it for $800 at the end of the two years. Interest rates are 22% nominal, compouneded monthly in both cases. Draw a cash flow diagram for each option [2 marks] Determine which option is better financially [6 Marks)

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