If you are going to buy a new copier for your small business that costs 12 000 are you better off paying cash for it or making

Question

If you are going to buy a new copier for your small business that costs 12 000 are you better off paying cash for it or making five yearly payments of 3 000 at the end of each year Think about the future value of investing the lump sum of 12 000 versus the value of investing the 3 000 each year in an annuity and consider two cases one where you earn 2 on your investments and one where you earn 9 COL After five years if the 12 000 cash is invested at 2 the total value of the account would be If it is invested at 9 the total value of the account would be If the 3 000 payments are invested at 2 the total value of the account would be If they are invested at 9 the total value of the account would be Therefore at 2 less would be paid by paying cash and at 9 less would be paid by making payments Round to the nearest cent as needed

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