Question: What is the correct formula for solving this problem? Donald found two feasible options for an apartment to rent for the next 2 years. Option

What is the correct formula for solving this problem?What is the correct formula for solving this problem? Donald found two

Donald found two feasible options for an apartment to rent for the next 2 years. Option A requires monthly rent of $1,350 to be paid at the beginning of each month. Option B allows for end-of-month rent payments of $1,350 (same amenities as in option A). Donald uses a fairly high annual discount rate of 24% (sadly, he is also a high credit risk). Find the PV of the future rent payments for both options over the 2-year time period and explain which one Donald will prefer, if he bases his decision strictly on cash flow. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 2 decimal places e.g. 5,125.36.) Click here to view the factor table Donald would choose , because he would effectively be paying in rent over this two-year period

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