You are trying to decide between two mobile phone carriers. Carrier A requires you to...
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You are trying to decide between two mobile phone carriers. Carrier A requires you to pay $180 for the phone and then monthly charges of $60 for 24 months. Carrier B wants you to pay $105 for the phone and monthly charges of $66 for 12 months. Assume you will keep replacing the phone after your contract expires. Your cost of capital is 3.9%. Based on cost alone, which carrier should you choose? Based on cost alone, you will choose (Select from the drop-down menu.)
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