Please solve a) only 8.23 In your junior year, you have been elected presi-*5¹** dent of your student engineering organization oncampus. A computer and color printer are neededto support activities planned for the fall and springsemesters. You can lease a fully equipped systemfor $800 per month or purchase one for $8500 nowand pay a $75 per month maintenance fee. If thenominal interest rate is 15% per year, determinethe months of use necessary for the two options tobreak even using (a) tabulated factors, and (b) asingle-cell spreadsheet function. (c) Not knowingwhat the next president will want, you use a9-month study period. Which option is economi-cally better?

There are two alternatives to make an investment - Purchase Or Rent Purchase Cost = 8500Monthly…

8.23 In your junior year, you have been elected presi- 5¹% dent of your student engineering organization on campus. A computer and color printer are needed to support activities planned for the fall and spring semesters. You can lease a fully equipped system

8.23 In your junior year, you have been elected presi- 5¹% dent of your student engineering organization on campus. A computer and color printer are needed to support activities planned for the fall and spring semesters. You can lease a fully equipped system

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Please solve a) only

8.23 In your junior year, you have been elected presi-
*5¹** dent of your student engineering organization on
campus. A computer and color printer are needed
to support activities planned for the fall and spring
semesters. You can lease a fully equipped system
for $800 per month or purchase one for $8500 now
and pay a $75 per month maintenance fee. If the
nominal interest rate is 15% per year, determine
the months of use necessary for the two options to
break even using (a) tabulated factors, and (b) a
single-cell spreadsheet function. (c) Not knowing
what the next president will want, you use a
9-month study period. Which option is economi-
cally better?

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