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Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine Corporation. Several financing alternatives have been offered by Danning:(use
Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine Corporation. Several financing alternatives have been offered by Danning:(use appropriate factor(S) from the tables
1- pay $1130000 in cash immediately
2- pay $402000 immediately and the remainder in 12 annual installments of $90000, with the first installment due in one year.
Determine the best alternative for Harding, assuming that Harding can borrow funds at a 7% interest rate
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