Question: All Constructions, Inc. is planning on constructing a new facility. The company plans to pay 20% of the cost in cash and finance the balance.

All Constructions, Inc. is planning on constructing a new facility. The

All Constructions, Inc. is planning on constructing a new facility. The company plans to pay 20% of the cost in cash and finance the balance. If the company can afford annual payments of $1,281,740 for 30 years and the prevailing interest rate on mortgages is 9% compounded annually, how much can the company afford to spend (approximately) on the new facility (the total of the down payment plus the loan)? Select one: a. $16.5 million b. $21.9 million c. $24.2 million d. $26.8 million e. $30.1 million f. None of the above Clear my choice

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