Computer equipment for upcoming municipal polls

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Reference no: EM133223110

An instant voting company needs to purchase new computer equipment for the upcoming municipal polls and has received the following offers and has received the following offers:

Option 1: Pay $12,000 cash today and 5 quarterly installments due of $2,000 beginning in the first year, each at a rate of 6% effective quarterly.

Option 2: One payment in the second year of $23,000 and 12 monthly payments of $1300, which you will begin making 3 months from today at a rate of 2% effective monthly.

What is the present value of the best offer?

Reference no: EM133223110

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