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Problem 5 - 3 ( Algo ) Analysis of alternatives [ LO 5 - 3 , 5 - 8 ] Hard Hat Company is in
Problem Algo Analysis of alternatives LO
Hard Hat Company is in the process of purchasing several large pieces of equipment from Machine Corporation. Several financing alternatives have been offered by Machine:
Pay $ in cash immediately.
Pay $ immediately and the remainder in annual installments of $ with the first installment due in one year.
Make annual installments of $ with the first payment due immediately.
Make one lumpsum payment of $ five years from date of purchase.
Required:
Determine the best alternative for Hard Hat, assuming that Hard Hat can borrow funds at an interest rate.
Note: Round your final answers to nearest whole dollor amount. Use tables, Excel, or a financial calculator. FV of $ PV of $ FVA of $ PVA of $ FVAD of $ and PVAD of $
tableOption Option Option Option The best alternative for Hard Hat,
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