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Exercise 5 - 6 ( Static ) Present value; single amount ( LO 5 - 3 ) Ray and Rachel are considering the purchase of
Exercise Static Present value; single amount LO
Ray and Rachel are considering the purchase of two deluxe kitchen ovens. The first store offers the two ovens for $ with payment due today. The second store offers the two ovens for $ due in one year.
Required:
a Assuming an annual discount rate of calculate the present value.
b From which store should Ray and Rachel buy their ovens?
Complete this question by entering your answers in the tabs below.
Req
Assuming an annual discount rate of calculate the present value.
Note: Use tables, Excel, or a financial calculator. Round your answers to decimal places. FV of $ of s and PVA of $
tablePresent ValueStore Store
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