A Sarm is offered for sale for $22,500 cash or $ 7,500 cash and seguence payments of $ 4000 each the first due at the end of 3 years, If money is worth 7% , which purchase agreement is the better ? re of 5 annual

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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1. A farm is offered for sale for
$22,500 cash or $ 7,500 cash
and a sequence of 5 annual
payments of $ 4000 each the
first due at the end of 3 years.
If money is worth 7%, which
purchase agreement is the better?
Transcribed Image Text:1. A farm is offered for sale for $22,500 cash or $ 7,500 cash and a sequence of 5 annual payments of $ 4000 each the first due at the end of 3 years. If money is worth 7%, which purchase agreement is the better?
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