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As CFO of a small manufacturing firm, you have been asked to determine the best financing for the purchase of a new piece of equipment.
As CFO of a small manufacturing firm, you have been asked to determine the best financing for the purchase of a new piece of equipment. The vendor is offering repayment options of $ 9,100 at the end of each year for five years, or no payment for two years followed by one payment of $ 42,500 at the end of two years. The current market rate of interest is 11%. Calculate present value of both options.(For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answers to 2 decimal places, e.g. 5,275.25.) Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Present Value Option 1 $ Option 2 ta $ Which option would you recommend
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