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A company purchases a new machine by issuing an $18,000 non-interest-bearing three-year note. The company expects to pay off the obligation by paying $6,000 at
A company purchases a new machine by issuing an $18,000 non-interest-bearing three-year note. The company expects to pay off the obligation by paying $6,000 at the end of each year. The market rate for obligations of this type is 8%. The present value of an annuity at 8% for three periods is 2.577097. The machine would be recorded at a cost of
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