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Lena [83]
3 years ago
5

Use the following 10% interest factors. Present Value of Ordinary Annuity Future Value of Ordinary Annuity 7 periods 4.86842 9.4

8717 8 periods 5.33493 11.43589 9 periods 5.75902 13.57948 What amount should be recorded as the cost of a machine purchased December 31, 2020, which is to be financed by making 8 annual payments of $16000 each beginning December 31, 2021? The applicable interest rate is 10%. $182974 $92144 $85359 $112000
Business
1 answer:
katen-ka-za [31]3 years ago
5 0

Answer:

The cost of the machine will be $85,358.88‬

Explanation:

To calculate the present value of the machine is given by:

Present value=$16000*Present value of annuity factor(10%,8)

=$16000*5.33493

= $85,358.88‬

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