Exercise 6-11 (Part Level Submission)Wildhorse Excavating Inc. is purchasing a bulldozer. The equipment has

a price of $98,200. The manufacturer has offered a payment plan that would allow Wildhorse to make 11 equal annual payments of $18,762.98, with the first payment due one year after the purchase.

Part A total interest = 108,192.78

(b) Wildhorse could borrow $98,200 from its bank to finance the purchase at an annual rate of 14%. Click here to view factor tables Should Wildhorse borrow from the bank or use the manufacturer’s payment plan to pay for the equipment? (Round answer to 0 decimal places, e.g. 7%.)

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