You have just been hired as the new Financial Manager of an enterprise. Your office is in need of new modernized equipment which costs a total of Ten Thousand dollars ($10,000). You want to make a positive impression on your new employers, by showing you ean make wise financial decisions that will benefit the business. Your employers inform you that you can either purchase the equipment on Hire Purchase, or take a Quick Cash loan of $10,000 for the purpose of purchasing the equipment. The conditions for the options are:

Option 1: Hire Purchase price $11,500. A down payment of $1,500 is required. The balance to be paid off over a period of eighteen (18) equal monthly payments at an annual interest rate of 20%. Option

2: Take a Quick Cash Loan of $10,000. The loan should be amortized over a period of twelve (12) monthly equal payments at an annual interest rate of 24%.

Required Submit a report of no more than two pages on your decision to either take the Quick Cash Loan, or the Hire Purchase option Clearly show the calculations to arrive at the monthly payments and the amortization schedule to include the monthly payments and total amount to be paid for each option. Clearly explain the reasons for your choice, and how your decision can be beneficial to the business.

I think you have to use the formula for the present value of annuity formula in the text book Foundations of Finance eighth edition because that is what we are using for class. Please show all workings.