### Decide between two mobile phone carriers

Assignment Help Financial Management
##### Reference no: EM132014725

Tyler is trying to decide between two mobile phone carriers. Carrier A requires him to pay \$500 for the phone and monthly charges of \$70 for 36 months. Carrier B wants him to pay \$300 for the phone and monthly charges of \$80 for 30 months. Assume he will keep replacing the phone after his contract expires. His cost of capital is 55%. Based on cost alone, which carrier should he choose What are the equivalent monthly cost for both carrier?

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