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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Related Book For
Accounting
ISBN: 9780130906991
5th Edition
Authors: Charles T. Horngren, Walter T. Harrison, Linda S. Bamber, Betsy Willis, Becky Jones
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