Question
On thefIrst day of th e C IiTT e n t year, Alpha Corpofalion purcha sed equipment in wh i ch the firs t pa
OnthefIrstday ofthe CIiTTent year,AlphaCorpofalionpurchased equipmentinwhichthefirstpaymentwinnOlbe madeuntilthe first dayoflhethirdyear.At thattime,Alphastartmakingannualpaymentsof IO,OOOatthe beginningof eachyearforthenext 5 years (atotalof5payments). Using aninterestrate of 6% compounded annually, performtwo differentpresentvalue computationsfor these paymentsinwhichonecomputation usestheannuityduetable and the other usestheordinaryannuitytableinaddition toany other table:required. Roundtothenearestdollar.Failureto show yourworkwillresultinno credit.
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