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In this video tutorial, we learn how to calculate a lease or purchase decision for a computer. The computer costs $2,000 to buy, or $700 annually to lease. Buying involves a one-time payment, while leasing requires $700 at the start and end of each year for three years. To compare the two options, we can calculate the total cash flow for each. For purchasing, it is $2,000, while for leasing, we need to find the net present value of the cash flows using Excel's NPV function.