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please show work. Ayayai Inc. has $556,970 to invest. The company is trying to decide between two alternative uses of the funds. One alternative provides
please show work.
Ayayai Inc. has $556,970 to invest. The company is trying to decide between two alternative uses of the funds. One alternative provides $73,907 at the end of each year for 12 years, and the other is to receive a single lump-sum payment of $1,748,010 at the end of the 12 years. Which alternative should Ayayai select? Assume the interest rate is constant over the entire investment. Alternative Two e Textbook and Media Attempts: 2 of 3 used (b) Ayayai Inc. has completed the purchase of new Dell computers. The fair value of the equipment is $758,218. The purchase agreement specifies an immediate down payment of $184,000 and semiannual payments of $70,796 beginning at the end of 6 months for 5 years. What is the interest rate, to the nearest percent, used in discounting this purchase transaction? Interest rate % semiannuallyStep by Step Solution
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