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4. The Atlas Machinery Corporation sells its equipment to contractors on either of the following arrangements: a) cash basis: payments of marked price less 10%;
4. The Atlas Machinery Corporation sells its equipment to contractors on either of the following arrangements: a) cash basis: payments of marked price less 10%; b) installment basis: down payment of 20% of the marked price and the balance payable in equal annual installments for the next 4 years. If you are the engineer buying a 78 Concrete Mixer which is marked at $250,000 and if money is worth 5% compounded annually, which of the following arrangements will you consider better from your standpoint? A) Pay P225000 cash, or b} pay a down payment ofP50,000 and pay the balance on equal installments of 50,000 annually for the next 4 years
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