Metals, Inc. purchased a rust-inhibiting machine from the manufacturer by paying $50,000 cash on the purchase date and agreeing to pay $10,000 every three months during the next two years beginning three months after the purchase date. The market interest rate for this type of arrangement is 8%. Under GAAP, Metals will record this liability as the present value of all the cash flows in the arrangement, discounted at the effective market interest rate.

Additional information:

	PV of $1			PVA of $1
n / i	2%	8%		2%	8%
2	.96117	.85734		1.94156	1.78326
8	.85349	.54027		7.32548	5.74664

What value should Metals, Inc. record for the liability (and the machine) on the purchase date? (Round to nearest dollar.)

$123,255

$130,000

$80,000

$73,255