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Mike Macaro is selling a piece of land. Two offers are on the table. Morton Company offered a $40,000 down payment and $35,000 a year

Mike Macaro is selling a piece of land. Two offers are on the table. Morton Company offered a $40,000 down payment and $35,000 a year for the next 5 years. Flynn Company offered $25,000 down and $38,000 a year for the next 5 years. Assume money can be invested at 8% compounded annually. (Use Table13.2.)

a.

What is the value of the offers? (Do not round intermediate calculations. Round your answers to the nearest cent.)

Value
Morton Company $
Flynn Company $
b. Which offer is better for Mike?
Morton Company
Flynn Company

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