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On January 1, management purchased a new machine and financed the purchase with a loan from the bank. The firm must pay $12,000 on December
On January 1, management purchased a new machine and financed the purchase with a loan from the bank. The firm must pay $12,000 on December 31st every year for eight years to pay off the loan. Assuming an interest rate of 9% compounded annually, determine the carrying value of the Note Payable at the end of the first year (round to the nearest whole dollar; circle the answer that is closest to your calculation).
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