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Boweil Industries is purchasing a new piece of equipment for its manufacturing facilities. The list price of the equipment is $75,000, but the dealer is
- Boweil Industries is purchasing a new piece of equipment for its manufacturing facilities. The list price of the equipment is $75,000, but the dealer is willing to finance the equipment at 0 percent interest for 30 months. The financing agreement calls for 30 monthly installment payments of $2,500 each. Boweils normal cost of borrowing for this type of financing arrangement is 12 percent annually. What value should Boweil assign to the equipment and the note if the deal is accepted?
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