Grizzly Bear Tours Inc is purchasing new helicopter for its wilderness Grizzly Bear trips. Two payment choices are available, shown below as A and B. ITEM A B 0 Down payment (paid today) $10,000 Annual payments $65,000 60,000 Annual payments start date In 1 year In 1 year Length of payments 5 years 6 years Interest rate 4% 10% Present value Required: 16,763 Left:0:44:28 TANU SHARMA: Attempt 1 vu,Vuo Minuai pay ITCIILS In 1 year In 1 year Annual payments start date Length of payments 5 years 6 years Interest rat? 4% 10% Present value Required: a) Calculate the present value of each choice. (5 marks) b) Which option should Grizzly Bear Tours Inc choose? (2 marks) Previous Page Next Page MacBook Air F3 13 F4 F5 F6 F7 A # 3 $ 4 % 5 & 7 6 8 9 Grizzly Bear Tours Inc is purchasing new helicopter for its wilderness Grizzly Bear trips. Two payment choices are available, shown below as A and B. ITEM A B 0 Down payment (paid today) $10,000 Annual payments $65,000 60,000 Annual payments start date In 1 year In 1 year Length of payments 5 years 6 years Interest rate 4% 10% Present value Required: 16,763 Left:0:44:28 TANU SHARMA: Attempt 1 vu,Vuo Minuai pay ITCIILS In 1 year In 1 year Annual payments start date Length of payments 5 years 6 years Interest rat? 4% 10% Present value Required: a) Calculate the present value of each choice. (5 marks) b) Which option should Grizzly Bear Tours Inc choose? (2 marks) Previous Page Next Page MacBook Air F3 13 F4 F5 F6 F7 A # 3 $ 4 % 5 & 7 6 8 9