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Beach Corporation is looking to purchase a building costing $800,000 by paying $100,000 cash on the purchase date, and agreeing to make 5 yearly payments
Beach Corporation is looking to purchase a building costing $800,000 by paying $100,000 cash on the purchase date, and agreeing to make 5 yearly payments for the remainder owed; the first payment is due 1 year after the purchase date. Beach's incremental borrowing rate is 7%. How much will each of the payments be (expect slight rounding)? A. $ 120,000 B. $ 75,137 C. $ 170,723 D. $ 225,411
E. $ 195,113
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