1.- DO IT IN EXCEL, AND SHOW THE FORMULAS If the company purchases factory equipment, its $719,000 cost will be financed with a five-year 18.4% interest loan that requires equal annual payments...

1.-
DO IT IN EXCEL, AND SHOW THE FORMULAS

If the company purchases factory equipment, its $719,000 cost will be financed with a five-year 18.4% interest loan that requires equal annual payments including principal and interest. The bank charges a 0.75% commission. The equipment will be depreciated with a useful life of 5 years. The company will pay $12,000 per year for maintenance services. The company plans to keep the machine even after its recovery period.What is the total amount paid to the bank?

A) 1'160,034.00

B) None of the above

C) 719,000.00

D) $938,672.81