During the Depression the U.S, Congress passed real advertising reform, including law against "deceptive acts of commerce." The
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Answer:
sales revenue: 2,879,458.66
interest revenue over the period: 620,541.34 (this will be accrued by a portion each year)
Explanation:
As the goods are delivered immediately but the payment delayed for years, there is a significant financing component
To know the sales revenue and interest reveneu we should discount the 3,500,000 at 5% discount rate to know the present value of the goods sold:
Maturity 3,500,000.00
time 4.00
rate 0.05000
PV 2,879,458.66