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Pina Company owns a plot of land on which buried toxic wastes have been discovered. Since it will require several years and a considerable sum
Pina Company owns a plot of land on which buried toxic wastes have been discovered. Since it will require several years and a considerable sum of money before the property is fully detoxified and capable of generating revenues, Pina wishes to sell the land now. It has located two potential buyers: Buyer A, who is willing to pay $750,000 for the land now, and Buyer B, who is willing to make 23 annual payments of $87,000 each, with the first payment to be made 8 years from today. Assuming that the appropriate rate of interest is 8%. Click here to view factor tables Calculate the present value for each of the buyer. (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to O decimal places, e.g. 458,581.) Buyer A Buyer B Present value of purchase price $ ta To whom should Pina sell the land? Pina should sell to
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