Question
Bowman Inc. purchased land on January 1, 2020, by issuing a three-year, $185,000 note, structured as a zero-interest-bearing note. The entire principal is payable December
Bowman Inc. purchased land on January 1, 2020, by issuing a three-year, $185,000 note, structured as a zero-interest-bearing note. The entire principal is payable December 31, 2022. The market rate of 9% is implicit in this agreement. What is the implied fair value of the land? a. $185,000 b. $142,854 c. $171,296 d. $158,608
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Cost Benefit Analysis Concepts And Practice
Authors: Anthony E. Boardman, David H. Greenberg, Aidan R. Vining, David L. Weimer
5th Edition
1108401295, 978-1108401296
