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On May 1 , Year 1 , a company purchased a new machine that it does not have to pay for until May 1 ,

On May

1,

Year

1,

a company purchased a new machine that it does not have to pay for until May

1,

Year

3 .

The total payment on May

1,

Year

3,

will include both principal and interest. Assuming interest at a

10 %

rate, the cost of the machine would be the total payment multiplied by what time value of money concept?

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