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Business, 08.04.2020 02:52 trevorhenyan51

The Hub is a business dedicated to providing rentable work spaces for local companies or self-employed individuals. As they begin to expand their business, they need to acquire a set of computers for an in-house computer lab. IBM offers the computers for a single payment of $55,000 due at the end of four years. Dell offers similar computers, but requires four annual payments of $13,000 due at the end of each year. The Hub could borrow the funds at 5%. Using discounted cash flows, determine which computers The Hub should purchase.

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