Question: Li Jun, an office administrator, is evaluating the following quotation that she received for the purchase of a printer for her office: Lease Option:
Li Jun, an office administrator, is evaluating the following quotation that she received for the purchase of a printer for her office: Lease Option: Make payments of $85 at the beginning of every month for 5 years. At the end of 5 years, make the final payment of $1,250. Purchase Option: Make a payment of $5,200 immediately. a. What is the present value of the lease option if money is worth 7.8% compounded semi-annually? $0.00 Round to the nearest cent b. Which option would be economically better? (click to select) c. What is the present value of the lease option if money is worth 10.2% compounded semi-annually? Round to the nearest cent d. Which option would be economically better? (click to select)
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a What is the present value of the lease option if money is worth 78 compounded semiannually 000 Round to the nearest cent To calculate the present va... View full answer
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