Harding company is in the process of purchasing several

Reference no: EM13588478

Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine Corporation. Several financing alternatives have been offered by Danning:

1.Pay $1,180,000 in cash immediately.

2.Pay $481,000 immediately and the remainder in 10 annual installments of $98,000, with the first installment due in one year.

3.Make 10 annual installments of $162,000 with the first payment due immediately.

4. Make one lump-sum payment of $1,770,000 five years from date of purchase.

Required:

a.Assuming that Harding can borrow funds at an 8% interest rate, determine the present value. (Use PV of $1, PVA of $1, and PVAD of $1) (Round "PV Factors" to 5 decimal places and final answers to the nearest dollar amount.)

PV 1 $

PV 2 $

PV 3 $

PV 4 $

Reference no: EM13588478

Questions Cloud

Presented below is information related to viel company at : presented below is information related to viel company at december 31 2014 the end of its first year of

Using the result obtain in a what is your 2013 projectionif : the sales data for lonestar sports apparel company for the last 12 years are as follows2001 400000 2007 617000 2002

A long straight wire of non-negligible radius r carries a : question a long straight wire of non-negligible radius r carries a current i. use amperes law to derive an expression

Hwang corporation has engaged in a number of expenditures : hwang corporation has engaged in a number of expenditures relating to a land acquisition for a future plant. for each

Harding company is in the process of purchasing several : harding company is in the process of purchasing several large pieces of equipment from danning machine corporation.

Identify and explain the meaning of the slope and the : a college bookstore has been selling one particular tee shirt for a year now. during the fall term 100 were sold at a

A 1kg mass hangs from a cord wrapped around a solid disk : a 1kg mass hangs from a cord wrapped around a solid disk pulley with a mass of 3kg and radius 25cm. the cord is 2m long

If gregs bicycle shop chooses to report inventory using : gregs bicycle shop has the following transactions related to its top-selling mongoose mountain bike for the month of

A receiving department compares inventory items received : a receiving department compares inventory items received with copies of purchase orders. the purchase orders list the

User Account

All Pages