Alligood Equipment Corporation sold a precision tool machine with computer controls to Kaui Corporation for $400,000 on

Question:

Alligood Equipment sold a precision tool machine with computer controls to Kaui for $400,000 on January 2 and agreed to take payment nine months later on October 2. Assuming that the prevailing annual interest rate for such a transaction is 16 percent compounded quarterly, what is the actual sale (purchase) price of the machine tool?

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...