Question
You are looking at buying some equipment for your factory. two companies have offered to sell you the equipment. 1. Ace requires a payment of
You are looking at buying some equipment for your factory. two companies have offered to sell you the equipment.
1. Ace requires a payment of &800,000 now and ¥800,000 in two years. calculate the cost to buy the equipment from ace, in todays money. if the interest rate is 10% compounded semi - annually?
2. Betta wants to beat ace offer by ¥50,000 ( in todays money) and requires that you pay ¥900,000 now and the rest in 18 months. how much do you need to pay in 18 months if money is still valued at j2=10%?
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1 Pay 800000 now and balance 800000 in 2 years PV of cash outflow Period Cas...
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
