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Note: The following question is worth 5 points: Assume Dunder Mifflin Company bought a new copy machine today. The purchase agreement requires the company to

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Note: The following question is worth 5 points: Assume Dunder Mifflin Company bought a new copy machine today. The purchase agreement requires the company to make a $5,000 down payment today as well as make annual payments of $10,000 a year at the end of each of the next five years (beginning with the end of year 1). Assume an interest rate of 10% is appropriate with annual compounding. How would one calculate the cost of the machine for Dunder Mifflin? You can refer to the following tables to assist you with your answer: TABLE 1 - FUTURE VALUE (AMOUNT) OF $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 5 1.051 1.104 1.159 1.217 1.276 1.338 1.469 1.611 10 1.105 1.219 1.344 1.480 1.629 1.791 2.159 2.594 TABLE 2 - PRESENT VALUE OF $1 Periods. 1% 2% 3% 4% 5% 6% 8% 10% 5 9515 9057.8626 8219 7835 7473 .6806 6209 10 9053.8204 7441 6736 6139 5584 4632 3855 TABLE 3 - FUTURE VALUE OF AN ORDINARY ANNUITY OF $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 5 5.101 5.204 5.309 5.416 5.526 5.637 5.867 6.105 10 10.462 10.950 11.464 12.006 12.578 13.181 14.487 15.937

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