Solutions to Chapter 1

This value is lower because the monthly payments come before year-end, and therefore have a higher PV. Leasing the truck means that the firm must make a series of payments in the form of an annuity. Using a financial calculator, enter: PMT = 8,000, n = 6, i = 7%, FV = 0, and compute PV = $38,132.32 ................
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