Question 5 (5 points) Lillard Ltd purchased machinery and presented the seller a $370,000, 4-year, zero- interest-bearing note. Lillard will pay off the note in four equal installments due at the end of each year for the next four years. The prevailing market rate of interest for obligations of this nature is 5%. At what amount should Lillard capitalize the equipment? Round the answer to the nearest dollar. Input a numerical answer only; do not use any symbols. 5% 6% TABLE 6-2 PRESENT VALUE OF 1 (PRESENT VALUE OF A SINGLE SUM) 1 PVF, = = (1 + i)" (1 + i)" (n) Periods 2% 27% 3% 4% 1 .98039 .97561 .97087 .96154 2 .96117 .95181 .94260 .92456 3 .94232 .92860 .91514 .88900 4 .92385 .90595 .88849 .85480 5 .90573 R8385 .86261 .82193 .95238 .90703 .86384 .82270 .78353 .94340 .89000 .83962 .79209 .74726 TABLE 6-4 PRESENT VALUE OF AN ORDINARY ANNUITY OF 1 1 PVF-OAn = (1 + i)" (n)