Hard Hat Company is in the process of purchasing several large pieces of equipment from Machine Corporation. Several financing alternatives have been offered by Machine: Pay $$1,000,000$ in cash immediately. Pay $$450,000$ immediately and the remainder in $10$ annual installments of $$83,000,$ with the first installment due in one year. Make $10$ annual installments of $$145,000$ with the first payment due immediately. Make one lump$-$sum payment of $$1,620,000$ five years from date of purchase.

Determine the best alternative for Hard Hat, assuming that Hard Hat can borrow funds at a$($n$)8\%$ interest rate. 

Answer rating: 100% (QA)

Heres how to determine the best alternative for Hard Hat Company 1 Consider the Cost of Each Option Option 1 Pay 1000000 immediately This option has t... View the full answer