What is the pv of the free installation option

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You are considering two home security companies for your new house. The first company offers free installation and equipment, but will charge you $490.00 per year for the next five years. The second company charges $709.00 for installation, but will charge you $216.00 per year for the next five years. Assume that payments are at the END of the year. Your personal interest rate is 5.00%.

What is the PV of the free installation option? What is the PV of the paid installation? Express answers as a negative and round to 2 decimal places.

Reference no: EM131953390

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