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View Policies Show Attempt History Current Attempt in Progress Ivanhoe Tooling Ltd. is assessing two available options for the purchase of new equipment with a negotiated cash price of $110,000 The manufacturer is wiling to accept a down payment of 20% of the purchase price and an instalment note for the balance. The note would require quarterly frend principal payments dels interest starting October 1, 2020, for a period of two years. Ivanhoe has a proposal from its bork for an instalment loan for two years that requires a td blended monthly payment including both principal and interest starting August 1.2020. The loan would be for of the equipment's purchase price. The current market rate of interestis. Toth contracts have an interest rate of la) Your wer is correct Is there any measurement uncertainty indetermining which option is best for van No Which discounted ch flow approach should be used in the comparison of the two alternatives? Tradiscounted Chow Approach (b) Calculate the amount of the payments required of Ivanhoe under each alternative Round answers to 2 decimal places, es 5,275.25) Quarterly fixed principal interest payments option with manufacturer: Total amount of payments $ Fixed blended monthly instalment note with the bank Including principal and interest: Total amount of payments $ e Textbook and Media Save for later Attempts: 0 of 3 used Sub AWE

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