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

Question

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

Quizplus · Accepted Answer

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

Assume That a Company Has a Loan Agreement That Provides