Question
Your firm is considering the purchase of a new office phone system. You can either pay $32,000 now, or $1,000 per month for 25
Your firm is considering the purchase of a new office phone system. You can either pay $32,000 now, or $1,000 per month for 25 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 19% 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 7% 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.) example Get more help - Clear all Check answer
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