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Your firm is considering purchasing a new piece of equipment to enhance production. Your firm has narrowed the possibility to four models, which perform equally
Your firm is considering purchasing a new piece of equipment to enhance production. Your firm has narrowed the possibility to four models, which perform equally well. However, the method of financing the four models is different. All models have an interest rate of percent.
Model A requires an ordinary annuity of $ per year for the next ten years.
Model B requires your company to pay $ for the equipment at the end of the first year.
Model C requires an annuity due payment of $ per year for the next four years.
Model D requires the following endofyear payment schedule:
tableYears:Cash Flows Model D:$$$$$
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