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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? | ||||
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