Your Firm Intends to Finance the Purchase of a New

Multiple Choice

Your firm intends to finance the purchase of a new construction crane.The cost is $2,500,000.How large is the payment at the end of year ten if the crane is financed at a rate of 7.50% as a discount loan?

A) $5,152,578.91
B) $4,158,364.87
C) $3,391,475.16
D) There is not enough information to answer this question.