Your company is interested in having a new facility constructed. The contractor expects that it will take approximately 3 years to complete the building. The contractor has offered you three payment plans for the building. They are as follows: Time Plan 1 Plan 2 Plan 3 Today $2,112,000 $0 $3,168,000 1 year from now $6,864,000 $11,484,000 $0

Question

12-02-2020
Business

contestada

Your company is interested in having a new facility constructed. The contractor expects that it will take approximately 3 years to complete the building. The contractor has offered you three payment plans for the building. They are as follows: Time Plan 1 Plan 2 Plan 3 Today $2,112,000 $0 $3,168,000 1 year from now $6,864,000 $11,484,000 $0

Respuesta :

Otras preguntas

Jay went to an amusement park. The park charges an entrance fee of $10.50 and $4.50 for every ride. Jay spent $46.50 on entrance fees and rides. Which fuction c

What are some of the ways that space shuttles have helped science?

Which is the BEST strategy for determining the meaning of a word in context? 0 A) See how many times the word is used in

A car starts from the rest and accelerates uniformly for t=5 seconds over a distance of 100m. Find the acceleration of the car

Which terms represent a vector quantity and its respective unit?

Round 62.686 to the nearest hundredth

How to write an equation for passing through (-7, -4) , perpendicular to y=1/2x + 9?

Why did immigration decline in the 19802?

Help !! What are some ways scientist communicate with each other

Number 4 is kinda tricky for me please help me

abdulmajeedabiodunac abdulmajeedabiodunac · Answer 1 · 2020-02-13T13:06:44+01:00

Answer:

The question is not complete,please find attached complete question.

Plan 3 is the best choice to make since it has the lowest present value of $17,658,612 compared to other plans.

By choosing plan 3 over plan 1,the company is saving $389,069.74 in present value terms,while choosing plan 3 over plan 2 saves $166,444.61

Explanation:

Find attached as well in the addition to the question,the excel spreadsheet showing each option was evaluated and the decision made that plan 3 should be opted for.