# 4- Purchasing of Computers A department has ordered 8 new Dell computers at a cost of $2,309 each. The order will not be delivered for 6 months. What amount should the department deposit (one-time) in a special 6-month CD earning 4.79% (APR) compounded monthly to have enough to pay for the machines at the time of delivery? In discussing this purchase with a co-workers, some say a sinking prdinary annuity) fund would be better, others would just finance the purchase at the time of delivery. What are your thoughts?
# 4- Purchasing of Computers A department has ordered 8 new Dell computers at a cost of $2,309 each. The order will not be delivered for 6 months. What amount should the department deposit (one-time) in a special 6-month CD earning 4.79% (APR) compounded monthly to have enough to pay for the machines at the time of delivery? In discussing this purchase with a co-workers, some say a sinking prdinary annuity) fund would be better, others would just finance the purchase at the time of delivery. What are your thoughts?
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter21: Supply Chains And Working Capital Management
Section: Chapter Questions
Problem 10MC
Related questions
Question
Please give complete solution.
Help me fast with detail explanation.
Definitely I will give Upvote.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College