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Cullumber Excavating Inc. is purchasing a bulldozer. The equipment has a price of $100,000. The manufacturer has offered a payment plan that would allow Cullumber
Cullumber Excavating Inc. is purchasing a bulldozer. The equipment has a price of $100,000. The manufacturer has offered a payment plan that would allow Cullumber to make 14 equal annual payments of $12,843.32, with the first payment due one vear after the purchase. 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. Cullumber could borrow $100,000 from its bank to finance the purchase at an annual rate of 8%. Should Cullumber borrow from the bank or use the manufacturer's payment plan to payfor the equipment? (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to 0 decimal places, eg. 52\%.) Manufacturer's rate %
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