As the CFO of a small manufacturing firm, you have been asked to determine the best...
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As the CFO of a small manufacturing firm, you have been asked to determine the best financing for the purchase of a new piece of equipment. The vendor is offering the following two repayment options. Option 1 Annual payment at end of each year Number of payments Option 1 Single payment at end of year 2 Date of payment: end of year Current market rate of interest $ 8.000 5 $ 37 500 2 6% Required: Provide input into cells shaded in yellow in this template. Input the required mathematical formulas or functions with cell references to the Problem area or work area as indicated. Use Excel's PV function to calculate the PV of each option. Display both PVs as positive amounts. Option 1 Option 2 Which option would you recommend? As the CFO of a small manufacturing firm, you have been asked to determine the best financing for the purchase of a new piece of equipment. The vendor is offering the following two repayment options. Option 1 Annual payment at end of each year Number of payments Option 1 Single payment at end of year 2 Date of payment: end of year Current market rate of interest $ 8.000 5 $ 37 500 2 6% Required: Provide input into cells shaded in yellow in this template. Input the required mathematical formulas or functions with cell references to the Problem area or work area as indicated. Use Excel's PV function to calculate the PV of each option. Display both PVs as positive amounts. Option 1 Option 2 Which option would you recommend?
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Related Book For
Accounting Principles Volume 2
ISBN: 9781119786634
9th Canadian Edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
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