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

Your firm is considering the purchase of a new office phone system. You can either pay $31 comma 500now, or $1 comma 050 per month for 42 months.
a. Suppose your firm currently borrows at a rate of 7% 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?
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Part 1
a. Suppose your firm currently borrows at a rate of 7% per year(APR with monthly compounding). Which payment plan is more attractive?
The present value of the monthly cash flows is $

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