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You have two options to obtain communications equipment for your business. The first option is to lease the equipment for five payments of $2,500 per
You have two options to obtain communications equipment for your business. The first option is to lease the equipment for five payments of $2,500 per year, with the first payment due loday. At the end of the fitth yoar you will return the equipment and Will need to decide how to replace it. The second choice is to purchase the equipment for $10,000 today. You oxpect the purchased equipment to have a useful life of five years, alter which it will be obsolete, have no resale value, and you will. need to decide how to replace it. Which option offers the best value for your business if your discount rato is 13% ? 201 and 103 Tho leasing option has the lowest present value and. thereforo, offers your business the best value: The leasing option has the highest future volue and, therefore, ollers your business the best value. The purchase option has the highest fulure value and, therelore, offers your business the best value. The purchare option has the lowest present value and, therefore, offers your businoss the best value. Note: Clicking any button other than the save Answer button wis nor sove any changes to your antwers
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