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Fata Food Emporium decides to obtain a new refrigerator to store its meat and produce. The relrigerator has as 15year useful life and oan be
Fata Food Emporium decides to obtain a new refrigerator to store its meat and produce. The relrigerator has as 15year useful life and oan be sold for 515,000 at the end of its useful life. Fata has two options: (Click the icon to view the two options.) (Click the icon to view the Future Value of 51 table.) (Click the icon fo view the Presert Vaiue of $1 table.) (Click the ieen to view the Future Value of an Ordinary Annuity table.) (Cligk the icon to view the Present Vatue of an Grdinary Arnuty table.) Begin by calculating the present value of Option A: purchase the refrigerator Begin by oslalating the present valus of Cption A. purchase the retrigeraty: The nat present value of Cption A. purchnee the retigerator, is Now coleulate the present value of Option B: tease the retilgerator. The net present valia of Ootion B, lasee the refigerator, is Fata Food Emportum ghould the retrigerator because the not present value of future cach outfows is Future Value of $1 Future Value of an Ordinary Annuity Future Value of an Annuity Due Present Value of $1 Present Value of an Ordinary Annuity Present Value of an Annuity Due Fata Food Emporium decides to obtain a new refrigerator to store its meat and produce. The relrigerator has as 15year useful life and oan be sold for 515,000 at the end of its useful life. Fata has two options: (Click the icon to view the two options.) (Click the icon to view the Future Value of 51 table.) (Click the icon fo view the Presert Vaiue of $1 table.) (Click the ieen to view the Future Value of an Ordinary Annuity table.) (Cligk the icon to view the Present Vatue of an Grdinary Arnuty table.) Begin by calculating the present value of Option A: purchase the refrigerator Begin by oslalating the present valus of Cption A. purchase the retrigeraty: The nat present value of Cption A. purchnee the retigerator, is Now coleulate the present value of Option B: tease the retilgerator. The net present valia of Ootion B, lasee the refigerator, is Fata Food Emportum ghould the retrigerator because the not present value of future cach outfows is Future Value of $1 Future Value of an Ordinary Annuity Future Value of an Annuity Due Present Value of $1 Present Value of an Ordinary Annuity Present Value of an Annuity Due
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