Dell Canada Advertises a Computer Bundle Including Printer, Router and Home

question 98

Multiple Choice

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?

• A) Lease is better by $48.64
• B) Purchase is better by $48.64
• C) Lease is better by $109.38
• D) Purchase is better by $109.38
• E) Both options are the same.

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Definitions:

Physiological Reactions

The body's automatic responses to internal or external stimuli, often involving changes in heart rate, respiration, perspiration, and other bodily functions.

Basic Emotion

Fundamental emotions that are universal across human cultures, such as happiness, sadness, fear, disgust, surprise, and anger, believed to be biologically innate.

Physiological Response

The body's automatic reactions to stimuli, influenced by both genetic and environmental factors.

Stimulation

The action of encouraging something to function, increase, or develop, usually through external input or factors.