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Dell Canada advertises a computer bundle including printer, router and home network attached storage for $2995. The same system bundle may be leased for 24 months at $130 per month, at the beginning of each month. At the end of the lease, the bundle may be purchased for 10% of its retail price. What is the economic cost of the lease or purchase in present value, if a two year loan can be obtained at 12% compounded annually to purchase the computer?
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