Question: QUESTION 7 Your firm is purchasing a new computer server that will last for five years. The firm can purchase the system for an upfront

QUESTION 7
Your firm is purchasing a new computer server that will last for five years. The firm can purchase the system for an
upfront cost of $400,000. Alternatively, you can lease the server from the manufacturer for $8,000 paid at the end of
each month. The lease price is offered for a 60-month lease with no early termination-you cannot end the lease early.
Your firm can borrow at an interest rate of 6% per year with monthly compounding. Should you purchase outright or
lease?
A. Purchase Outright
B. Lease
QUESTION 7 Your firm is purchasing a new computer server that

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