Investing money at a nominal rate of compounded monthly

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Question: A firm can buy a piece of equipment for $200,000 paid immediately, or in three installments: $70,000 paid now, $70,000 in one year, and $70,000 in two years time. Which option is better if money can be invested at a nominal rate of 6% compounded monthly? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM131773652

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Investing money at a nominal rate of compounded monthly : A firm can buy a piece of equipment for $200,000 paid immediately, or in three installments: $70,000 paid now, $70,000 in one year, and $70,000 in two years.
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