Question: NEED HELP WITH THIS QUESTION 5 minute left, help? It is January 1, Year 1. Narduzzi Company is comparing two alternatives for leasing a machine.
It is January 1, Year 1. Narduzzi Company is comparing two alternatives for leasing a machine. Narduzzi's appropriate interest/discount rate is 5%. Alternative A requires 6 annual payments of $4000 with the first payment due immediately on January 1, Year 1. Alternative B requires 2 annual payments of $5,500 and then three annual payments of $4,500 with the first payment of $5,500 due one year from now on January 1, Year 2. 1. Calculate the present value on January 1, Year 1 of alternative A. Input the answer in whole dollars, no cents. 2. Calculate the present value on January 1, Year 1 of alternative B. Input the answer in whole dollars, no cents, 3. Only considering cost, which alternative should Narduzzi select? A or B
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