A car dealer leases a small computer with software for $, per year. As an alternative he could buy the computer for $ and lease the software for $, per year. Any time he would decide to switch to some other computer system he could cancel the software lease and sell the computer for $.
a) If he buys the computer and leases the software, what is the payback period?
b) If he kept the computer and software for years, what would be the benefit-cost ratio, based on % interest rate?
Thanks!
Answer
? Favorite Answer
Payback is years.