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On January 1, 2019, Jefferson Company completed arrangements to purchase a new piece of equipment. In addition to an initial payment of $20,000, the agreement

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On January 1, 2019, Jefferson Company completed arrangements to purchase a new piece of equipment. In addition to an initial payment of $20,000, the agreement calls for six equal annual payments of $75,000 each December 31 for next six years (beginning this year). The interest rate is 12%. Required: Calculate the cost of the equipment to Jefferson Company

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