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Homework 4 Me Seved mane Lights, Camera, and More solls filmmaking equipment. The company offers three purchase options: (1) pay full cash today, (2)
Homework 4 Me Seved mane Lights, Camera, and More solls filmmaking equipment. The company offers three purchase options: (1) pay full cash today, (2) pay one- half 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 $55,000 and therefore has the following payment options: Option 1 Option 2 Payment Today Payment in One Year Total Payment $55,000 0 $55,000 27,500 30,250 57,750 Option 3 0 63,250 63,250 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. Req 1A Assuming an annual discount rate of 11%, calculate the present value and the total cost. (FV of $3, PV of S1, FVA of $1. and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places Payment Today Present Value of Payment in One Year Total Present Value (or Total Cost) Option 1 Option 2 Option 3 Aug 1 Req 18 > < Prev 4 of 6 MacBook Air Next >>
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