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NEW QUESTION: 1
You recently purchased a twin-engine plane after landing an ultra-lucrative job on Wall Street. The annual payments on the plane are $8,000 per year and the installment plan extends over 5 years. The payments start today. If your discount rate is 8.5% per year, how much would it have cost you to purchase the plane on an all-cash basis?
A. $36,429
B. $41,232
C. $34,205
D. $40,611
Answer: C
Explanation:
Explanation/Reference:
Explanation:
The present value of the installment payments equals 8,000 + (8,000/0.085)*(1-1/(1.085

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