You are looking at buying some equipment for your factory. two companies have offered to sell you

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You are looking at buying some equipment for your factory. two companies have offered to sell you the equipment.

1. Ace requires a payment of &800,000 now and ¥800,000 in two years. calculate the cost to buy the equipment from ace, in todays money. if the interest rate is 10% compounded semi - annually?

2. Betta wants to beat ace offer by ¥50,000 ( in todays money) and requires that you pay ¥900,000 now and the rest in 18 months. how much do you need to pay in 18 months if money is still valued at j2=10%?

Posted Date: Nov 17, 2021 04:50 AM

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You are looking at buying some equipment for your factory. two companies have offered to sell you

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1 Pay 800000 now and balance 800000 in 2 years PV of cash outflow Period Cas... View the full answer

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