Question
A company must purchase new equipment costing $59,000. The company can pay cash on the basis of the purchase price or make payments of $815
A company must purchase new equipment costing $59,000. The company can pay cash on the basis of the purchase price or make payments of $815 per month for eight years. Interest is 7.5% compounded monthly. Compute the present value of each alternative and determine if the company should purchase the new equipment with cash or make payments on the installment plan.
The present value of the equipment if the company pays cash is $_________
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Contemporary Business Mathematics with Canadian Applications
Authors: S. A. Hummelbrunner, Kelly Halliday, K. Suzanne Coombs
10th edition
133052311, 978-0133052312
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