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This tutorial discusses the decision between purchasing or leasing a new server rack for an office. The cost of purchasing is $7,500, while leasing involves paying $2,000 annually for four years. The true cost of leasing requires finding the present value of payments, considering potential reinvestment earnings. A 3% return rate is used for comparison. The problem hints towards finding present value, which simplifies decision-making. The assessment will provide this hint. Ultimately, the goal is to determine the most cost-effective option between buying and leasing.
