Assignment. Please complete in excel.
- The city museum will have a Picasso exhibit on loan for 3 years. As part of the conditions of the loan, a specialized alarm & security system must be installed.
High Security Company will install a suitable system for $50,000 initial payment & $2,500/month in monitoring fees.
- Tight Security Company will install a suitable system for $75,000 initial payment & $1,675/month in monitoring fees. Both security systems would be used for 3 years.
Assuming an annual discount rate of 9% with monthly compounding, which contract has the lowest net present cost?