Reference no: EM133016336
Question - Edward Lewis has just purchased some equipment for his landscaping business. For this equipment he must pay the following amounts at the end of each of the next five years: $10,280, $7,880, $9,760, $12,420, and $11,230. If the appropriate discount rate is 6.390 percent, what is the cost in today's dollars of the equipment Edward purchased today?
Thomas Taylor borrowed some money from his friend and promised to repay him $1,220, $1,340, $1,500, $1,570, and $1,570 over the next five years. If the friend normally discounts investment cash flows at 6.5 percent annually, how much did Thomas borrow?
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