On June 1,2016, Molser Company acquired a new machine by agreeing to pay five equal annual payments of $20,000, with the first payment due that day. Assuming an interest rate of 14% compounded annually, Molser should record the acquisition cost of the machine as
A) $68,662.
B) $78,274.
C) $87,719.
D) $100,000.

Question

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The Answer of On June 1,2016, Molser Company acquired a new machine by agreeing to pay five equal annual payments of $20,000, with the first payment due that day. Assuming an interest rate of 14% compounded annually, Molser should record the acquisition cost of the machine as
A) $68,662.
B) $78,274.
C) $87,719.
D) $100,000.

On June 1,2016, Molser Company Acquired a New Machine by Agreeing