ACC 307 7-2 Homework 4 - Harding Company is in the process...

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Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine Corporation. Several financing alternatives have been offered by Danning: 1.Pay $1,030,000 in cash immediately. 2.Pay $470,000 immediately and the remainder in 10 annual installments of $85,000, with the first installment due in one year. 3.Make 10 annual installments of $147,000 with the first payment due immediately. 4.Make one lump-sum payment of $1,640,000 five years from date of purchase.

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