Splish Excavating Inc. is purchasing a bulldozer. The equipment has a price of $97,600. The...
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Splish Excavating Inc. is purchasing a bulldozer. The equipment has a price of $97,600. The manufacturer has offered a payment plan that would allow Splish to make 10 equal annual payments of $19,447.00, with the first payment due one year after the purchase. Splish could borrow $97,600 from its bank to finance the purchase at an annual rate of 14%. Should Splish borrow from the bank or use the manufacturers payment plan to pay for the equipment? (Round answer to 0 decimal places, e.g. 7%.) Manufacturer's rate???
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