Find and solve the present value

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Calculate the present value of a single amount

Ray and Rachel are considering the purchase of two deluxe kitchen ovens. The first store offers the two ovens for $3,000 with payment due today. The second store offers the two ovens for $3,200 due in one year.

Required:

Question 1-a. Assuming an annual discount rate of 8%, calculate the present value. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answers to 2 decimal places.)

Question 1-b. From which store should Ray and Rachel buy their ovens?

Reference no: EM132539860

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