What should the yearly payment be so that michaelsoffer


Michael Security has learned that a rival has offered to supply a parking garage with security for ten years for $45,000 up front and a further $15,000 per year. Michael Security offers to provide security for eight years for an upfront cost of $60,000 and a separate yearly payment. What should the yearly payment be so that Michael'soffer matches the equivalent annual annuity of their rival's offer? (Assume a cost of capital of 5%.)

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What should the yearly payment be so that michaelsoffer
Reference No:- TGS02814865

Expected delivery within 24 Hours