Business, 11.03.2020 02:13 andreastyles1603
On December 30, 2005, Bart, Inc. purchased a machine from Fell Corp. in exchange for a non-interest bearing note requiring eight payments of $20,000. The first payment was made on December 30, 2005, and the others are due annually on December 30. At date of issuance, the prevailing rate of interest for this type of note was 11%. Present value factors are as follows: Present value of Present value of an Period ordinary annuity of 1 at 11% annuity due of 1 at 7 4.712 5.2318 5.146 5.712The initial value of the machine is:.a. $114,240.b. $104,620.c. $ 94,240.d. $102,920.
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On December 30, 2005, Bart, Inc. purchased a machine from Fell Corp. in exchange for a non-interest...
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