Present and future value tables of 1 at 11% are presented below.

(a) (b) (c) (d)

	PV of	FV of	PVA of O/A	PVA of A/D
	$1	$1	$1	$1
1	0.90090	1.11000	0.90090	1.00000
2	0.81162	1.23210	1.71252	1.90090
3	0.73119	1.36763	2.44371	2.71252
4	0.65873	1.51807	3.10245	3.44371
5	0.59345	1.68506	3.69590	4.10245
6	0.53464	1.87041	4.23054	4.69590

(c)= Present Value of Ordinary Annuity of $1. (d)= Present Value of Annuity Due of $1

9- On October 1, 2020, Justine Company purchased equipment from Napa Inc. in exchange for a noninterest-bearing note

payable in five equal annual payments of $500,000, beginning Oct 1, 2021. Similar borrowings have carried an 11%

interest rate. The equipment would be recorded at:

a. $2,500,000.

b. $2,225,000.

c. $1,847,950.

d. $2,115,270.