what is the maximum amount that the company should pay for the machine today such that the chouices should be equivalent? a. 817,253 b. $853, 946 c. $840,551 d. $843,848 e. None of the above
what is the maximum amount that the company should pay for the machine today such that the chouices should be equivalent? a. 817,253 b. $853, 946 c. $840,551 d. $843,848 e. None of the above
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
Section: Chapter Questions
Problem 1PS
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A company is buying a machine. They can pay a $45,000 downpayment now, and pay %15,000 every month for the life of the machine (7 years), or they can pay teh full marks value of the machine now. If the salvage value is expected to be $250,000 and can borrow money at an interest rate of 9%, compounded monthly, what is the maximum amount that the company should pay for the machine today such that the chouices should be equivalent?
a. 817,253
b. $853, 946
c. $840,551
d. $843,848
e. None of the above
: List answer ______
Please use excel and show formulas.
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