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1. A mining equipment dealer A has approached the Owner of a mine to sell five articulated dump trucks at a cash price of PhP25Million
1. A mining equipment dealer A has approached the Owner of a mine to sell five articulated dump trucks at a cash price of PhP25Million each, two 30-ton excavators at cash price of 30Million each to be paid by amortization/installment for 85 months. Another dealer B has offered the same number of equipment for each type at exactly the same brand and model at an installment payment of PhP 3,326,947.80/month for 86 months. Given a 14% effective interest rate for both dealers and a monthly installment payment as a chosen option by the Owner to acquire the said equipment, recommend based on PV which of the dealers are giving the mine Owner a lesser acquisition cost and Why? (30 pts)
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