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B and C please! Time fine of cash flow and the present value of an annuity due. Mauer Mining Company leases a special driling pross
B and C please! Time fine of cash flow and the present value of an annuity due. Mauer Mining Company leases a special driling pross with annual payments of $100,000. The contract calls for rent payments at the beginning of each year for a minimum of 9 years. Mauer Mining can buy a similar drit for $640,000, but it will need to borrow the funds at 10%. a. Show the two choices on a timeline with the cash flow. b. Determine the present value of the lease payments at 10%. c. Should Mauer Mining lease or buy this drill? PV=PMTr1[1/(1+r)n](1+r)
B and C please!
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