josetatai7203 josetatai7203

19-04-2024
Mathematics

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A company must purchase new equipment costing $19,500. The company can pay cash on the basis of the purchase price or make payments of $250 per month for eight years. Interest is 6.3% compounded monthly. Compute the present value of each alternative and determine if the company should purchase the new equipment with cash or make payments on the installment plan.

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