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Those blue hyperlinks for the charts (FV of $1, PV of $1, FVA of $1, and PVA of $1). Lights, Camera, and More sells filmmaking
Those blue hyperlinks for the charts (FV of $1, PV of $1, FVA of $1, and PVA of $1).
Lights, Camera, and More sells filmmaking equipment. The company offers three purchase options: (1) pay full cash today, (2) pay onehalf down and the remaining one-half plus 10% in one year, or (3) pay nothing down and the full amount plus 15% in one year. George is considering buying equipment from Lights, Camera, and More for $85,000 and therefore has the following payment options: Required: 1-a. Assuming an annual discount rate of 11%, calculate the present value and the total cost. 1-b. Which option's cost has the lowest present value? Complete this question by entering your answers in the tabs below. Assuming an annual discount rate of 11%, calculate the present value and the total cost. Note: Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. (FV of \$1, PV of \$1, FVA of $1, and PVA of \$1) Table 1 Future Value of $1 Table 2 Present Value of $1 Table 3 Future Value of an Ordinary Annuity of $1 TiA 01/1,n, Table 4 Present Value of an Ordinary Annuity of \$1Step by Step Solution
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