Question
12- The cash price of a machine tool is $3500.00. The seller is willing to accept a $1000.00 down payment and 24 end-of-month monthly payments
12- The cash price of a machine tool is $3500.00. The seller is willing to accept a $1000.00 down payment and 24 end-of-month monthly payments of $107.45 each. What is the effective interest rate offered by the seller? a) 4% b) 5.5% c) 3.04% d) 4.5% 13- Two alternatives are considered for a project. Alternative A requires $10000.00 initial investment and results in $15000.00 savings at the end of the year. Alternative B requires $20000.00 initial investment and results in $28000.00 savings at the end of the year. If MARR on investments is 20%, which alternative should be chosen? a) A b) B c) None d) A and B are equally desirable
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