Question 15 of 16 A manufacturing firm purchased a heavy duty drilling machine. They were given two payment options: Option 1: Make a payment of $39,000 immediately to settle the invoice for the...

Extracted text: Question 15 of 16 A manufacturing firm purchased a heavy duty drilling machine. They were given two payment options: Option 1: Make a payment of $39,000 immediately to settle the invoice for the machine. Option 2: Make a payment of $23,500 immediately and the balance of $23,550 in 3 months to settle the invoice. If money is worth 7.12% compounded quarterly, answer the following: a. What is the total present value of Option 2? Round to the nearest cent b. Which option is economically better for the manufacturing firm? Option 1 Option 2