Question: ( $ 1 , 0 2 0 ) per year for the first 5 years, $ 2 , 0 2 0
$ per year for the first years, $ per year for the next years, and $ per year for the last years. Following is each vendor's sales package. perform all yearend maintenance at a onetime initial cost of $
Vendor B: Forty semiannual payments of $ each, with the first installment due upon delivery. Vendor B will perform all yearend maintenance for the next years at no extra charge.
Vendor C: Full cash price of $ will be due upon delivery.
Assuming that both Vendors A and B will be able to perform the required yearend maintenance, that Skysong's cost of funds is and the machine will be purchased on January compute the following:
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The present value of the cash flows for vendor ARound factor values to decimal places, eg and final answer to decimal places, eg
The present value of the cash outflows for this option is $
The present value of the cash flows for vendor BRound factor values to decimal places, eg and final answer to decimal places, eg
The present value of the cash outflows for this option is $
The present value of the cash flows for vendor CRound factor values to decimal places, eg and final answer to decimal places, eg
The present value of the cash outflows for this option is $
From which vendor should the press be purchased?
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