Answer:
$437766.0885
Explanation:
You are required to find how much the company can spend now on new equipment based on spending.
$235,000 one year from now
$355,000 3 years from now
Interest rate = 15% per year
P = $235000(p/f,15%,1) + $355,000(p/f,15%,3)
= 235,000x1.15^-1 + 355000x1.15^-3
= 204,347.826 +233418.2625
= $437766.0885
This is the amount that the company would afford to spend.
