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You have entered into an agreement to purchase a local accounting firm. The agreement specifies you will pay the seller $168,000 at the end of
You have entered into an agreement to purchase a local accounting firm. The agreement specifies you will pay the seller $168,000 at the end of each year for six years. What is the cost today of the purchase, assuming a discount rate of (a) 6%, (b) 8%, or (c) 10%? Note: Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places. (FV of $1, PV of $1. FVA of $1, and PVA of $1) a. b. C. Annuity Payment $ 168,000 168,000 168,000 Annual Interest Rate Compounded 6% Annually 8% 10% Annually Annually Period Invested 6 years - 6 years 6 years Present Value of Annuity
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