Ray and Rachel are considering the purchase of two deluxe kitchen ovens. The first store offers the two ovens for $2,600 with payment due today. The second store offers the two ovens for $2,800 due in one year.

Required:

1-a. Assuming an annual discount rate of 9%, 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.)

Present value

Store 1:

Store 2:

1-b. From which store should Ray and Rachel buy their ovens?

	Store 1
	Store 2