Which option is better to keep marr effective

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Reference no: EM13180530

buy a computer for $2,500 now, keep it for 8 years and then sell it for $800. The computer is not expected to require any maintenance for the first 3 years, but starting in year 4, the maintenance cost will be $250 per year. Alternatively, you can lease one for $50 per month. Which option is better, assuming that you will keep the computer for 4 years and that your MARR is an effective 12.683% per year?

Reference no: EM13180530


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