Question

You are deciding which of two computers to purchase. The interest rate is 0.09, and the maintenance rate of both machines is 0.01. The first computer costs $4000 and has a rate of physical and technological depreciation of 0.10. The second computer, on the verge of obsolescence, has a rate of physical and technological depreciation of 0.30. If the annual rental payment for the two computers is the same, how much must the purchase price of the second computer be for you to be willing to buy it?



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  • CreatedDecember 12, 2014
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