You are trying to decide between two mobile phone carriers. Carrier A requires you to pay...
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You are trying to decide between two mobile phone carriers. Carrier A requires you to pay $210 for the phone and then monthly charges of $56 for 24 months. Carrier B wants you to pay $95 for the phone and monthly charges of $68 for 12 months. Assume you will keep replacing the phone after your contract expires. Your cost of capital is 4.4% APR, compounded monthly. Based on cost alone, which carrier should you choose? The EAA for plan A is $ (Round to the nearest cent.) You are trying to decide between two mobile phone carriers. Carrier A requires you to pay $210 for the phone and then monthly charges of $56 for 24 months. Carrier B wants you to pay $95 for the phone and monthly charges of $68 for 12 months. Assume you will keep replacing the phone after your contract expires. Your cost of capital is 4.4% APR, compounded monthly. Based on cost alone, which carrier should you choose? The EAA for plan A is $ (Round to the nearest cent.)
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