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A company must repay the bank a single payment of $10,000 cash in 3 years for a loan it entered into. The loan is at
A company must repay the bank a single payment of $10,000 cash in 3 years for a loan it entered into. The loan is at 8% interest compounded annually. The present value factor for 3 years at 8% is 0.7938. The present value of the loan is:
$12,400.
$10,000.
$7,600.
$9,200.
$7,938.
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