Tyler is trying to decide between two mobile phone carriers. Carrier A requires him to pay $400 for the phone and monthly charges of $70 for 30 months. Carrier B wants him to pay $200 for the phone and monthly charges of $90 for 18 months. Assume he will keep replacing the phone after his contract expires.His cost of capital is 6 %. Based on cost alone, which carrier should he choose?
a) The equivalent monthly cost for Carrier A is ?
b) The equivalent monthly cost for Carrier B is?
c) Tyler should choose Carrier A or Carrier B because it is the cheaper option?