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In this video, we learn how to make a decision between leasing or purchasing a computer. The cost of the computer is $2000, with an annual lease payment of $700. Comparing the total cash flow, purchasing requires a one-time payment of $2000, while leasing involves multiple payments over three years. To compare the two alternatives, we need to calculate the net present value of the cash flows. This can be done in Excel by adding up the initial cash flow and using the NPV function.