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On June 30, 2024, Countryside Farms purchased custom-made harvesting equipment from a local producer. In payment, Countryside signed a noninterest-bearing note requiring the payment of
On June 30, 2024, Countryside Farms purchased custom-made harvesting equipment from a local producer. In payment, Countryside signed a noninterest-bearing note requiring the payment of $93,000 in two years. The fair value of the equipment is not known, but an 10% interest rate properly reflects the time value of money for this type of loan agreement. At what amount will Countryside initially value the equipment?
How do I calculate Present value??
Table or calculator function: | PV of $ 1 |
Future value | |
n = | |
I = | |
Present value | |
Interest expense | $ |
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