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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 and the annual lease payment is $700. Buying the computer requires paying $2,000 upfront, while leasing involves paying $700 at the beginning of each year. To compare the two options, calculate the total cash flow for each. In Excel, use the NPV function to compute the net present value of the lease payments over time.