Competency_Assesment_3.docx__2_.docx MM255-3 Analyze the results of mathematical calcula

Competency_Assesment_3.docx__2_.docx  MM255-3  Analyze the results of mathematical calculations for financial decision making  The best annuity option for the Viny Fence Company is the annuity due because it more lucrative.  The formula FV = PMT ((1+ R-1)/(R)) ^(n) states the value of ordinary annuity is $60,742.50.    It is due at the beginning of each month and provides a higher present value which gives my business more money in the long run. It also has the same number of installments and provides one more period of interest than the ordinary annuity. (Cheryl CLEAVES, 2013)  If we choose to use formula FV due = PMT ((1 +R-1)/(R)) ^(n) (1+) which give us an annuity of $61,957.35. to find the deficit, we will have to pay the rate based on the number of periods. So, 3 years semi-annually with a compounding interest of 12% gives you 4 periods at 8%  To calculate the depreciation or sinking fund of 8% x $1.00 = .08 To find the money needed during each period we have to multiply the original table amount of $45000 to be able to afford the new machine.   In order to obtain the goal to be able to expand the Vinyl Fence Company for the future and to be able to purchase a new facility.  I would need to prioritize the purchases and identify how much revenue would be flowing through as a result of the expansion of the new warehouse.  Once this is determined the company would be able to see if it has received enough of the funds to pay for the new machine.  If not it can definitely seek help with financing.  ï‚·1. Given,