How much will each of the annual payments be

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Problem 1: Rudy Corporation is looking to purchase a building costing $460,000 by paying $80,000 cash on the purchase date, and agreeing to make annual payments for the next eight years; the first payment is due one year after the purchase date. Rudy's incremental borrowing rate is 8%. How much will each of the annual payments be? (Round "PV Factor" to 4 decimal places and final answer to nearest dollar amount.)

Option 1: $80,047

Option 2: $47,500

Option 3: $56,126

Option 4: $66,126

Reference no: EM132630583

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