Ray and Rachel are considering the purchase of two deluxe kitchen ovens. The fir

Question

Ray and Rachel are considering the purchase of two deluxe kitchen ovens. The first store offers the two ovens for $2,200 with payment due today. The second store offers the two ovens for $2,400 due in one year Required: 1 a. Assuming an annual discount rate of 9%, calculate the present value. A of decimal places.) 1, P of $1. E A of$1, and P A $1 Use appropriate factor(s) from the tables provided. Round your answers to 2 Present Value Store 1 Store 2 1-b. From which store should Ray and Rachel buy their ovens? Store 2 Store 1

Explanation / Answer

1) Calculate present value :

1b) Ray and rachel should buy their ovens from Store 1

Present value Store 1 2200 Store 2 (2400* 2201.83

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