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:

Axon Terminals

The endings of axons that make synaptic connections with other nerve cells or with effector cells.

Telodendria

The fine terminations of an axon or dendrite which are involved in transmitting the nerve impulse to other neurons or to muscles.

Neurofibrils

Fine, threadlike structures within nerve cells that contribute to the cell's support and transport functions.

Central Nervous System

The part of the nervous system consisting of the brain and spinal cord, responsible for processing and sending out neural signals.