A car dealer leases a small computer with software
for $4,532 per year. As an alternative he could buy
the computer for $7,701 and lease the software for
$3,397 per year. Any time he would decide to switch
to some other computer system he could cancel the
software lease and sell the computer for $700. If he
buys the computer and leases the software, what is
the payback period? (years, with 2 decimal points)
You Answered
2.21
Correct Answer
5.17 margin of error +/- 1%