Lights, Camera, and More sells filmmaking equipment. The company offers three purchase options:
pay full cash today, pay onehalf down and the remaining onehalf plus in one year, or pay
nothing down and the full amount plus in one year. George is considering buying equipment from
Lights, Camera, and More for $ and therefore has the following payment options:
Required:
a Assuming an annual discount rate of calculate the present value and the total cost.
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 calculate the present value and the total cost.
Note: Use tables, Excel, or a financial calculator. Round your answers to decimal places. FV of $ of $
and PVA of $
