Comparison of Present Values Growl Company has elected to purchase additional vending machines and has discussed loan agreements with a vice-president of Friendly Bank. The banker has offered a choice of two loans: one alternative is to make payments of $20,000 per year for 20 years, including an 11 percent annual interest charge; the second alternative is to pay $17,000 per year for 15 years, including an annual interest charge of 8 percent. All payments are made at year-end. Which alternative would give Growl Company the largest amount of cash to use in purchasing machinery? Explain why.