Assuming the market interest rate is 10% per annum, how much would Green Co. record as a note payable if the terms of the loan with a bank are that it would have to make one $80,000 payment in two years? (The present value of $1 for two periods at 10% is 0.82645) .
A) $80,000.
B) $72,563.
C) $72,727.
D) $66,116.
Correct Answer:
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