The buyer of a certain machine is given 2 options to pay it: 1st option is paying it P405,551 down payment and P274,609 monthly for the next 6 year, starting a month from now; 2nd option is to pay it P350,000 down payment and P200,000 annually for the next 5 years. If the money is worth 21% compounded monthly, what is the present value of the 1st option?

The buyer of a certain machine is given 2 options to pay it: 1st option is paying it P405,551 down payment and P274,609 monthly for the next 6 year, starting a month from now; 2nd option is to pay it P350,000 down payment and P200,000 annually for the next 5 years. If the money is worth 21% compounded monthly, what is the present value of the 1st option?

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 9EB: If you invest $15,000 today, how much will you have in (for further instructions on future value in...

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