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Your firm is considering the purchase of a new office phone system. You can either pay $ 3 1 , 5 0 0 now, or

Your firm is considering the purchase of a new office phone system. You can either pay $31,500 now, or $1,050 per month for 39 months.
a. Suppose your firm currently borrows at a rate of 6% per year (APR with monthly compounding). Which payment plan is more attractive?
b. Suppose your firm currently borrows at a rate of 20% per year (APR with monthly compounding). Which payment plan would be more attractive in this case?
a. Suppose your firm currently borrows at a rate of 6% per year (APR with monthly compounding). Which payment plan is more attractive?
The present value of the monthly cash flows is $
(Round to the nearest cent.)
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