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Section 1. Question 9. Centipede Inc. is a company that sells modern equipment. To purchase a new equipment for your company from Centipede, you as
Section 1. Question 9. Centipede Inc. is a company that sells modern equipment. To purchase a new equipment for your company from Centipede, you as a financial manager, have narrowed down two models which function and perform equally. However, the schedule of payments of two models are different as followed. Year 1 2 3 4 5 Payment (Model A) $5,000 5,000 5,000 5,000 5,000 Payment (Model B) $7,000 6,000 5,000 4,000 3,000 Which model would you buy if the yearly interest is 8%? Please explain why. If you were to negotiate for your chosen model, how will you go about doing it
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