Required information

Skip to question

$[$The following information applies to the questions displayed below.$]$

On January $1,$ Boston Company completed the following transactions $($use a $7\%$ annual interest rate for all transactions$)$: $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ and PVA of $$1)$

Note: Use appropriate factor$($s$)$ from the tables provided.

Promised to pay a fixed amount of $$7,900$ at the end of each year for nine years and a one$-$time payment of $$118,800$ at the end of the $9$th year.

Established a plant remodeling fund of $$492,850$ to be available at the end of Year $10.$ A single sum that will grow to $$492,850$ will be deposited on January $1$ of this year.

Agreed to pay a severance package to a discharged employee. The company will pay $$76,900$ at the end of the first year, $$114,400$ at the end of the second year, and $$151,900$ at the end of the third year.

Purchased a $$179,500$ machine on January $1$ of this year for $$35,900$ cash. A five$-$year note is signed for the balance. The note will be paid in five equal year$-$end payments starting on December $31$ of this year.

$3.$ In transaction $($c$),$ determine the present value of this obligation.

Note: Round your intermediate calculations and final answer to nearest whole dollar.