Should wade accept an offer paying

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Reference no: EM131886258

Wade is selling a tractor for $50,000. The buyer can pay $15,000 now, $12,500 next year, $7,500 in two years, and $15,000 in three years. If Wade’s boss requires an 8% interest rate, should Wade accept the offer? Should Wade accept an offer paying $11,000 per year for 6 years? (The first payment would be one year from the purchase.)

Reference no: EM131886258

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