P15A-7 Osaka Children's Choir needs a fleet of vans to transport the children to singing engagements throughout

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P15A-7 Osaka Children's Choir needs a fleet of vans to transport the children to singing engagements throughout Japan. Toyota offers the vehicles for a single payment of 7.200,000 yen due at the end of four years. Nissan prices a similar fleet of vans for four annual pay- ments of 1,700,000 yen each. The children's home could borrow the funds at 6%, so this is the appropriate interest rate. Which company should get the business. Toyota or Nissan? Base your decision on present value, and give your reason.

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Accounting

ISBN: 9780130906991

5th Edition

Authors: Charles T. Horngren, Walter T. Harrison, Linda S. Bamber, Betsy Willis, Becky Jones

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