Brief Exercise 5-14 (Algo) Present value; ordinary annuity [LO5-8] You have entered into an agreement to purchase a local accounting firm. The agreement specifies you will pay the seller $189,000 each year for six years. What is the cost today of the purchase, assuming a discount rate of (a) 7%, (b) 9%, or (c) 11%? Note: Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. (FV of $1, PV of $1, FVA of $1, and PVA of $1) a. b. C. Annuity Payment $ 189,000 189,000 189,000 Annual Rate 7% 9% 11% Interest Compounded Annually Annually Annually Period Invested 6 years 6 years 6 years Present Value of Annuity

Brief Exercise 5-14 (Algo) Present value; ordinary annuity [LO5-8] You have entered into an agreement to purchase a local accounting firm. The agreement specifies you will pay the seller $189,000 each year for six years. What is the cost today of the purchase, assuming a discount rate of (a) 7%, (b) 9%, or (c) 11% ? Note: Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. (FV of \$1, PV of \$1, FVA of S1, and PVA of (51)