Grizzly Bear Tours Inc is purchasing new helicopter for its wilderness Grizzly Bear trips. Two payment choices are available, shown below as A and B. ITEM B 0 Down payment (paid today) $10,000 Annual payments $65,000 60,000 Annual payments start in 1 year date In 1 year Length of payments 5 years 6 years Interest rate 4% 10% Present value Required: Required: a) Calculate the present value of each choice. (5 marks) b) Which option should Grizzly Bear Tours Inc choose? (2 marks) Previous Page Next Page