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On December 31, year 0, ABC purchased a machine in exchange for an interest-bearing note requiring 5 payments of $118651 at the end of the
On December 31, year 0, ABC purchased a machine in exchange for an interest-bearing note requiring 5 payments of $118651 at the end of the year. The first payment was made on December 31, year 1. At the date of the transaction, the prevailing rate of interest for this type of note was 8.1%. The initial value of the machine is: (please show how you get the prevailing interest rate)
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