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Quick as possible pls DiLaurentis Enterprises is acquiring vanderwaal, inc for $899,000. Vanderwall, inc. has agreed...

Quick as possible pls

DiLaurentis Enterprises is acquiring vanderwaal, inc for $899,000. Vanderwall, inc. has agreed to accept annual payments of $210,000 at an interest rate of 8.5% how many years will it take DiLaurentis enterprise to pay for this purchase?

A. 5 Years
B. 5.18 years
C.) 5.55 years
D. 5.80 years

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Homework Answers

Answer #1

- Present Value of acquiring Vanderwaal = $899,000

Annual Periodic Payment = $210,000

Calculating the number of years it will take for DiLaurentis enterprise to pay for this purchase using Excel "NPER" function:-

So, the number of years it will take for DiLaurentis enterprise to pay for this purchase is 5.55 years

Option C

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