(Answered) Your firm is considering the purchase of a new office phone

Finance

Your firm is considering the purchase of a new office phone system. You can either pay $32,000 ?now, or $ 950 per month for 41months.

a. Suppose your firm currently borrows at a rate of 7% per year? (APR with monthly? compounding). Which payment plan is more? attractive?

b. Suppose your firm currently borrows at a rate of 16 % per year? (APR with monthly? compounding). Which payment plan would be more attractive in this? case?

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