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Based on cost alone, which carrier should you choose?

Based on cost alone, which carrier should you choose?

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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4. You are trying to decide between two mobile phone carriers. Carrier A requires you to pay $215 for the phone and then monthly charges of $58 for 24 months. Carrier B wants you to pay $95 for the phone and monthly charges of $64 for 12 months. Assume you will keep replacing the phone after your contract expires. Your cost of capital is 4.2%. Based on cost alone, which carrier should you choose?
You are trying to decide between two mobile phone carriers. Carrier A requires you to pay $215 for the phone and then monthly charges of $58 for 24 months. Carrier B wants you to pay $95 for the phone and monthly charges of $64 for 12 months. Assume you will keep replacing the phone after your contract expires. Your cost of capital is 4.2%. Based on cost alone, which carrier should you choose? cility th Based on cost alone, you will choose (Select from the drop-down menu.) Carrier B Carrier A ven a wide va or expe ollars).
Transcribed Image Text:You are trying to decide between two mobile phone carriers. Carrier A requires you to pay $215 for the phone and then monthly charges of $58 for 24 months. Carrier B wants you to pay $95 for the phone and monthly charges of $64 for 12 months. Assume you will keep replacing the phone after your contract expires. Your cost of capital is 4.2%. Based on cost alone, which carrier should you choose? cility th Based on cost alone, you will choose (Select from the drop-down menu.) Carrier B Carrier A ven a wide va or expe ollars).
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