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Sauer Food Company has decided to buy a new computer system with an expected site of three years. The cost is $150.000 The company can
Sauer Food Company has decided to buy a new computer system with an expected site of three years. The cost is $150.000 The company can borrow $150,000 for three years at 10 percent annual interest or for one year at 8 percent annual interese How much would Sauer Food Company save an interest over the three year life of the commuter system the one ye loan is utred and the ban is rolled over for remaining 2 years reborrowed each year at the same percentrate compare this to the 10 percent three year loan 10 Percent Interesting b. What if interest rates on the percent loan go up to 12 percent in year two and 18 percent in cost row compared to the percent three years (nput all answer as positive values.) thee? What the total interest Weble Rate Alternativ Total Test Expense Thund in alternative tal Interest Expense
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