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Suppose you are evaluating two hardware lease proposals. Option 1 costs $8,000, but requires that the entire amount be paid in advance. Option 2 costs $10,500, but the payments can be made $1,500 now and $1,500 per year for the next six years. If you do a present value analysis assuming a 20 percent discount rate, which proposal is less expensive? Note: For this question, please limit you response to a maximum of two pages. Justify all your numerical answers and answer all the questions using your own words. Show all your work, including how you found your answer
Suppose you are evaluating two hardware lease proposals. Option 1 costs $8,000, but requires that the entire amount be paid in advance. Option 2 costs $10,500, but the payments can be made $1,500 now and $1,500 per year for the next six years. If you do a present value analysis assuming a 20 percent discount rate, which proposal is less expensive? Note: For this question, please limit you response to a maximum of two pages. Justify all your numerical answers and answer all the questions using your own words. Show all your work, including how you found your answer
