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Ray and Rachel are considering the purchase of two deluxe kitchen ovens. The first store offers the two ovens for $1,700 with payment due today.
Ray and Rachel are considering the purchase of two deluxe kitchen ovens. The first store offers the two ovens for $1,700 with payment due today. The second store offers the two ovens for $1,900 due in one year. Required: 1-a. Assuming an annual discount rate of 10%, calculate the present value. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) Answer is complete but not entirely correct. Store 1 Store 2 Present Value $ 1,870.00 2,090.00 1-b. From which store should Ray and Rachel buy their ovens? Store 2 Store 1
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