Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. not want to borrow any more cash. supplier no. 1 a

not want to borrow any more cash. Supplier No. 1 agrees to settle the account...

70.2K

Verified Solution

Question

Accounting

image
not want to borrow any more cash. Supplier No. 1 agrees to settle the account in one of two ways: Option 1: Pay $4,000 now and $18,750 when some large projects are finished, two years from today. Option 2: Pay $25,000 three years from today, when even larger projects are finished. Assuming that the only factor in the decision is the cost of money (8\%). What is the present value of alternative 1 ? 19,85520,07525,40021,300

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Give a brief description of two psychological disorders that are common in your community. Justify the...

Psychology
Q

Question 1 a) Purcell and Ahlstrand have developed a matrix of six management styles use this framework...

General Management
Q

Persistent pesticides undergo choose your answer choose your answer meaning they become more concentrated as...

Biology
Q

The Articles represented a victory for those who favored Ostate sovereignty O federal taxes state...

Biology
Q

Fifty four wild bears were anesthetized and then their weights and chest sizes were measured...

Statistics
Q

Jung Farms exports wheat to Germany. The company entered into the following transactions: November 15,...

Accounting
Q

Steve and Stephanie Pratt purchased a home in Spokane, Washington, for $605,000. They moved into...

Accounting
Q

To take advantage of the tax -saving developer entity strategy for appreciated land sales ,...

Accounting
Q

Belmont Company has two service departments and two production departments. The following information is provided...

Accounting
Q

Willetta Company purchases inventory for $22,000 with terms 2/10, n/30. It then returns $3,200 of...

Accounting
Q

1. The companys marketing team estimates that sales volume could be increased to 5,000 units...

Finance
Q

A five-year project has an initial fixed asset investment of $300,000, an initial NWC investment...

Finance