Question: 6 10 points Denzel needs a new car. At the dealership, he finds the car that he likes. The dealership gives him two payment options:

6 10 points Denzel needs a new car. At the dealership,

6 10 points Denzel needs a new car. At the dealership, he finds the car that he likes. The dealership gives him two payment options: 1. Pay $31,000 for the car today. 2. Pay $3,200 at the end of each quarter for three years. Required: 1-a. Assuming Denzel uses a discount rate of 12% (or 3% quarterly), calculate the present value. (FV of $1. PV of $1. FVA of $1, and PVA of $1 (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.) Book Present Value $ 31,000.00 Option 1 Dption 2 1-b. Which option gives him the lower cost? Option 1 Option 2 M

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