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This video discusses how to make a lease or purchase decision for a computer. The cost of the computer is $2,000, with an annual lease payment of $700. The upfront cost for purchasing is $2,000, while for leasing, it is $700 annually for three years. To compare the two options, calculate the total cash flow. For purchasing, it is $2,000, while for leasing, use the NPV function in Excel to compute the net present value of the cash flows.