Top Posters
Since Sunday
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
r
4
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
cloveb cloveb
wrote...
Go to Answer
Valued Member
Posts: 782
Rep: 62 1
7 years ago
You are considering the purchase of new equipment for your company and you havenarrowed down the possibilities to two models which perform equally well. However, themethod of paying for the two models is different. Model A requires $5,000 per year paymentfor the next five years. Model B requires the following payment schedule. Which model shouldyou buy if your opportunity cost is 8 percent?

Year             Payment (Model B)
1                  $7,000
2                  $6,000
3                  $5,000
4                  $4,000
5                  $3,000
Read 453 times
3 Replies
Replies
Answer accepted by topic starter
bolbolbolbol
wrote...
#1
Staff Member
Top Poster
Posts: 3162
Rep: 261 2
7 years ago
Sign in or Sign up in seconds to unlock everything for free
1

Related Topics

gs3
wrote...
#2
3 years ago
Thanks
wrote...
#3
2 years ago
thank you
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  1232 People Browsing
 124 Signed Up Today
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 242
  
 325
  
 225
Your Opinion
Which industry do you think artificial intelligence (AI) will impact the most?
Votes: 352
Previous poll results: What's your favorite coffee beverage?