Which of the following transactions would best use the present value of an ordin

ID: 2472605 • Letter: W

Question

Which of the following transactions would best use the present value of an ordinary annuity of 1 table?

Fernetti, Inc. rents a truck for 5 years with annual rental payments of $20,000 to be made at the beginning of each year.

Edmiston Co. rents a warehouse for 7 years with annual rental payments of $120,000 to be made at the end of each year.

Durant, Inc. borrows $20,000 and has agreed to pay back the principal plus interest in three years.

Babbitt, Inc. wants to deposit a lump sum to accumulate $50,000 for the construction of a new parking lot in 4 years.

Fernetti, Inc. rents a truck for 5 years with annual rental payments of $20,000 to be made at the beginning of each year.

Edmiston Co. rents a warehouse for 7 years with annual rental payments of $120,000 to be made at the end of each year.

Durant, Inc. borrows $20,000 and has agreed to pay back the principal plus interest in three years.

Babbitt, Inc. wants to deposit a lump sum to accumulate $50,000 for the construction of a new parking lot in 4 years.

Edmiston company rents a warehouse for 7 years with annual payments of $ 120000 to be ade at the end of each year

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