If the market rate of interest in BEPV.19 was 10%, what option would you choose? 

Data from BEPV.19

As CFO of a small manufacturing firm, you have been asked to determine the best financing for the purchase of a new piece of equipment. If the vendor is offering repayment options of $10,000 per year for five years, or only one payment of $46,000 at the end of two years, which option would you recommend? The current market rate of interest is 8%.