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Your firm is considering purchasing 10 points Problem 1: Your firm is considering pure lasing a new piece of equipment to enhance produciion, Your firm

Your firm is considering purchasing
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10 points Problem 1: Your firm is considering pure lasing a new piece of equipment to enhance produciion, Your firm has narrowed the possibility to four models, which perform equally well. However, the method of financing the four models is differentl All models have an ipterest rate of 9.00 percent. Model A requires an ordinary annuity of $2,500 per year for the next ten Oea(S, Model B requires your company to pay $20,450 for the equipment at the end of the first year. Model C requires an annuity due payment of $5,250 per year foi Che nek four years. Model D requires the following end-of-year payment schedule. Years: Cash Flows (Model D): $7,000 $2,000 $4,000 $6,000 $3,000 Required: Provide an answer to each of the following in; the area provided Round all fioal calculations to two decimal places. If needed, you can access the interest tables here. (a): What is the value toda of Model A? type your answer... (b): 'What is the value at time zero of model B? type your answer... (c): What is the resent value of Model C? type your answer:.. (d): What is the net present value of model D? type your answer... (e): What model is 'the best for your company? Explain your answer. type your answer...

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