As CFO of a small manufacturing firm, you have been asked to determine the best financing for

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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 $10,000 per year for five years, or no payment for two years followed by one payment of $46,000, which option would you recommend? The current market rate of interest is 8%.

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Intermediate Accounting

ISBN: 978-1119048534

11th Canadian edition Volume 1

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

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