A company is given the option of entering into a five-year, $20,000 financial lease arrangement that calls for prepaid monthly payments based on a 5.0% lease rate, or borrowing $20,000 through a five-year loan that calls for end-of-month payments based on a 5.4% lending rate.Ignoring any tax consequences, what is the NPV of the lease?
A)$275.11
B)$192.92
C)$186.27
D)$0

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The Answer of A company is given the option of entering into a five-year, $20,000 financial lease arrangement that calls for prepaid monthly payments based on a 5.0% lease rate, or borrowing $20,000 through a five-year loan that calls for end-of-month payments based on a 5.4% lending rate.Ignoring any tax consequences, what is the NPV of the lease?
A)$275.11
B)$192.92
C)$186.27
D)$0

A Company Is Given the Option of Entering into a Five-Year