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What is the present value of the first option

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Question - The buyer of a certain machine is given 2 options to pay it: 1st option is paying it P489,676 down payment and P293,972 monthly for the next 7 year, starting a month from now; 2nd option is to pay it P350,000 down payment and P200,000 annually for the next 5 years. If the money is worth 24% compounded monthly, what is the present value of the 1st option?

Reference no: EM133029702

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