Question: Question 22 You are the controller for Cullumber's Pizzeria Inc. (CPI). Cullumber is contemplating the purchase of a new commercial para even in his popular
Question 22 You are the controller for Cullumber's Pizzeria Inc. (CPI). Cullumber is contemplating the purchase of a new commercial para even in his popular Southern Ontario preria and is asking for your assistance in making his decision. From the options presented by his creditor, he has narrowed down is options as follows: Option 1: Purchase the pizza oven with payments of $10.700 made semi-annually for years. The interest rate on this arrangement is Option 2: Purchase the pizza oven with annual payments for years of $22.400 at interest Por each of the two options, using tables, a financial calculator or Excel function determine from a quantitative perspective, which of the two options should be pursued by Cullumber? (For calculation purposes, use decimal places as displayed in the factor table provided. Round final answers to 2 decimal places, c. 5,275.25.) Click here to view the factor table PRESENT VALUE OF L Click here to view the factor table PRESENT VALUE OF AN ANNULTY OF 1 Option 1 Present value Option 2 Present value Cullumber should pursue LINK TO TEXT
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