A shopper is considering the purchase of an appliance. Store 1 offers the appliance for $3,200 with
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Question:
A shopper is considering the purchase of an appliance. Store 1 offers the appliance for $3,200 with payment due today. Store 2 offers the appliance for $3,400 due in one year.
Required:
1-a. Assuming an annual discount rate of 9%, calculate the present value.
1-b. From which store should the shopper buy the appliance and why?
Related Book For
Financial Accounting and Reporting a Global Perspective
ISBN: 978-1408076866
4th edition
Authors: Michel Lebas, Herve Stolowy, Yuan Ding
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