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Cooper Company has purchased equipment that requires annual payments of $ 15 comma 000$15,000 to be paid at the end of each of the next
Cooper Company has purchased equipment that requires annual payments of
$ 15 comma 000$15,000
to be paid at the end of each of the next 6 years. The discount rate is
1414%.
The present value of $1 for six periods at
1414%
is
0.4560.456.
The present value of an ordinary annuity of $1 for six periods at
1414%
is
3.8893.889.
What amount will be assigned to the equipment at the purchase date? (Round your final answer to the nearest dollar.)
A.
$ 65 comma 175$65,175
B.
$ 58 comma 335$58,335
C.
$ 3 comma 857$3,857
D.
$ 6 comma 840
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