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Denzel needs a new car. At the dealership, he finds the car that he likes....

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Accounting

Denzel needs a new car. At the dealership, he finds the car that he likes. The dealership gives him two payment options:

  1. Pay $35,000 for the car today.
  2. Pay $4,000 at the end of each quarter for three years.

Required: 1-a. Assuming Denzel uses a discount rate of 12% (or 3% quarterly), calculate the present value. 1-b. Which option gives him the lower cost?

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