Annual installment payments

Assignment Help Financial Management

Reference no: EM131361749

You would like to buy a car. OptionA: you can finance with $10000 down payment today, and 3 years of annual installment payments of $7000 each year or OptionB: you can finance it with $15000 down payment today, and installment payments of $7000 in the 1st year and then $8000 in 2nd year. Discount rate is 8%. Which option would be a better deal? please show your work/ calculations

Reference no: EM131361749

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