You are the controller for Wildhorse's Pizzeria Inc. ( WPI ) . Wildhorse is contemplating the purchase of a new commercial pizza oven in his popular Southern Ontario pizzeria and is asking for your assistance in making his decision . From the options presented by his creditor , he has narrowed down his options as follows : 3 Option 1 : Purchase the pizza oven with payments of $ 10,900 made semi - annually for 3 years . The interest rate on this arrangement is 8 % Option 2 : Purchase the pizza oven with annual payments for 3 years of $ 22,800 at 9 % interest . Instructions For each of the two option , using a financial calculator or Excel function determine from a quantitative perspective , which of the two options should be pursued by Wildhorse