For Many American Consumers, the Purchase of a Personal Computer

question 45

Essay

For many American consumers, the purchase of a personal computer has shifted from an extended problem-solving decision to a limited problem-solving decision. How does this change the way retail stores should display and sell computers?

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Definitions:

NPV

Net Present Value; a calculation used to determine the value of a project or investment by discounting future cash flows to the present.

NAL

NAL, or Net Advantage to Leasing, is a calculation used to determine the financial benefits, if any, of leasing an asset compared to purchasing it outright.

Lease-Versus-Purchase Analysis

A financial comparison to determine whether leasing or purchasing assets is more cost-effective for a business.

Long-Term Debt

Borrowings that are due for repayment more than one year from the borrowing date, often used for significant investments.