On January 1, 2014, Chen Yus Office Supply Store plans to remodel the store and install new
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On January 1, 2014, Chen Yu’s Office Supply Store plans to remodel the store and install new display cases. Chen has the following options of payment. Chen’s interest rate is 8%.
a. Pay $270,000 on January 1, 2014.
b. Pay $294,300 on January 1, 2015.
c. Pay $334,750 on January 1, 2016.
d. Make four annual payments of $82,500 beginning on December 31, 2014.
Required
Which option should he choose?
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Related Book For
Financial Accounting The Impact on Decision Makers
ISBN: 978-1285182964
9th edition
Authors: Gary A. Porter, Curtis L. Norton
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