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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
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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

User Karan Kalsi
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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

Step-by-step 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.

Your company is interested in having a new facility constructed. The contractor expects-example-1
User Setevoy
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