You are trying to decide between two mobile phone carriers. Carrier A requires you to pay $180
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You are trying to decide between two mobile phone carriers. Carrier A requires you to pay $180 for the phone and monthly charges of $64 for 24 months. Carrier B wants you to pay $85 for the phone and monthly charges of $66 for 12 months. Assume you will keep replacing the phone after your contract expires. Your cost of capital is 4.4%.
Based on cost alone, which carrier should you choose?
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Related Book For
Fundamentals Of Corporate Finance
ISBN: 9781292437156
5th Global Edition
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
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