Exercise $5-9($Algo$)$ Noninterest$-$bearing note; single payment $($LO $5-5)$

Lights, Assessment Tool iFrame equipment. The company offers three purchase options: $(1)$ pay full cash

today, $(2)$ pay one$-$halt down and the remaining one$-$half plus $10\%$ in one year, or $(3)$ pay nothing down and the full

amount plus $15\%$ in one year. George is considering buying equipment from Lights, Camera, and More for $$50,000$ and

therefore has the following payment options:

Required:

$1-$a$.$ Assuming an annual discount rate of $11\%,$ calculate the present value and the total cost.

$1-$b$.$ Which option's cost has the lowest present value?

Complete this question by entering your answers in the tabs below.

Assuming an annual discount rate of $11\%,$ calculate the present value and the total cost.

Note: Use tables, Excel, or a financial calculator. Round your answers to $2$ decimal places.

$($FV of $$1,$ PV of $$1,$ FVA of $$1,$ and PVA of $$1)$

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