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In this video, we learn how to calculate a lease or purchase decision for a computer. The cost of the computer is $2,000, and the annual lease payment is $700. For purchasing, the full $2,000 is paid upfront, while for leasing, $700 is paid at the beginning of each year for three years. To compare the two options, we need to calculate the net present value of cash flows using Excel's NPV function.
