As CFO of a small manufacturing firm, you have been asked to determine the best...
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As CFO of a small manufacturing firm, you have been asked to determine the best financing for the purchase of a new piece of equipment. If the vendor is offering repayment options of $12,000 per year for five years, or only one payment of $55,200 at the end of two years, which option would you recommend? The current market rate of interest is 8%. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answers to 2 decimal places, e.g. 5,275.75.) Click here to view the factor table. Present Value of 1 Click here to view the factor table. Present Value of an Annuity of 1 The better option for repayment of this piece of equipment is
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As CFO of a small manufacturing firm, you have been asked to determine the best financing for the purchase of a new piece of equipment. If the vendor is offering repayment options of $12,000 per year for five years, or only one payment of $55,200 at the end of two years, which option would you recommend? The current market rate of interest is 8%. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answers to 2 decimal places, e.g. 5,275.75.) Click here to view the factor table. Present Value of 1 Click here to view the factor table. Present Value of an Annuity of 1 The better option for repayment of this piece of equipment is 