Wasp Corporation has a loan agreement that provides it with cash today,and the company must pay $25,000 one year from today,$15,000 two years from today,and $5,000 three years from today.Wasp agrees to pay 10% interest.The following are factors from a present value table:
$$\begin{array} { | l | l | }
\hline & \text { Interest rate } \
\hline \text { Periods } & 10 \% \
\hline 1 & 0.9091 \
\hline 2 & 0.8264 \
\hline 3 & 0.7513 \
\hline
\end{array}$$
What is the amount of cash that Wasp receives today?

Question

Wasp Corporation has a loan agreement that provides it with cash today,and the company must pay $25,000 one year from today,$15,000 two years from today,and $5,000 three years from today.Wasp agrees to pay 10% interest.The following are factors from a present value table:
 $$\begin{array} { | l | l | } 
\hline & \text { Interest rate } \
\hline \text { Periods } & 10 \% \
\hline 1 & 0.9091 \
\hline 2 & 0.8264 \
\hline 3 & 0.7513 \
\hline
\end{array}$$ 
What is the amount of cash that Wasp receives today?

Quizplus · Accepted Answer

The Answer of Wasp Corporation has a loan agreement that provides it with cash today,and the company must pay $25,000 one year from today,$15,000 two years from today,and $5,000 three years from today.Wasp agrees to pay 10% interest.The following are factors from a present value table:
 $$\begin{array} { | l | l | } 
\hline & \text { Interest rate } \
\hline \text { Periods } & 10 \% \
\hline 1 & 0.9091 \
\hline 2 & 0.8264 \
\hline 3 & 0.7513 \
\hline
\end{array}$$ 
What is the amount of cash that Wasp receives today?

Wasp Corporation Has a Loan Agreement That Provides It with Cash