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Exercise 5-9(Algo) Noninterest-bearing note; single payment (LO 5-5) Lights, Assessment Tool iFrame equipment....

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Accounting

Exercise 5-9(Algo) Noninterest-bearing note; single payment (LO 5-5)
Lights, Assessment Tool iFrame equipment. The company offers three purchase options: (1) pay full cash
today, (2) pay one-halt down and the remaining one-half plus 10% in one year, or (3) pay nothing down and the full
amount plus 15% in one year. George is considering buying equipment from Lights, Camera, and More for $50,000 and
therefore has the following payment options:
Required:
1-a. Assuming an annual discount rate of 11%, calculate the present value and the total cost.
1-b. Which option's cost has the lowest present value?
Complete this question by entering your answers in the tabs below.
Assuming an annual discount rate of 11%, calculate the present value and the total cost.
Note: Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.
(FV of $1, PV of $1, FVA of $1, and PVA of $1)
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