Swifty Corporation requires a new manufacturing facility. It found three locations; all of which would provide the needed capacity, the only difference is the price. Location A may be purchased for $502000. Location B may be acquired with a down payment of $100400 and annual payments at the end of each of the next twenty years of $50200. Location C requires $40160 payments at the beginning of each of the next twenty-five years. Assuming Swifty's borrowing costs are 9% per annum, which option is the least costly to the company?

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Location A.

Location A and Location B.

Location C.

Location B.

Use the following 7% interest factors.

Present Value of

Ordinary Annuity

Future Value of

Ordinary Annuity

7 periods

5.3893

8.65402

8 periods

5.9713

10.25980

9 periods

6.5152

11.97799

What will be the balance on September 1, 2024 in a fund which is accumulated by making $20000 annual deposits each September 1 beginning in 2017, with the last deposit being made on September 1, 2024? The fund pays interest at 7% compounded annually.

$119426

$146700

$205196

$173083