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Mr. Moy demonstrates a financial math example involving the decision to purchase or lease a new server rack for $7,500. The leasing option involves paying $2,000 annually over four years. The analysis considers the present value of these payments, factoring in the ability to earn an 8% return on reinvested money. By comparing the costs and returns at a 3% rate, the decision of whether to buy or lease is determined. The importance of understanding present value is emphasized for making informed financial decisions.
