Laramy purchases a new machine by issuing a $21,000 three-year note. The company will pay off the obligation by paying $7,000 at the end of each year. The market rate for obligations of this type is 8%. Actuarial information for three periods follows:

What is the capitalizable cost of the machine?

Question

Laramy purchases a new machine by issuing a $21,000 three-year note. The company will pay off the obligation by paying $7,000 at the end of each year. The market rate for obligations of this type is 8%. Actuarial information for three periods follows:
 
What is the capitalizable cost of the machine?

Quizplus · Accepted Answer

The Answer of Laramy purchases a new machine by issuing a $21,000 three-year note. The company will pay off the obligation by paying $7,000 at the end of each year. The market rate for obligations of this type is 8%. Actuarial information for three periods follows:
 
What is the capitalizable cost of the machine?

Laramy Purchases a New Machine by Issuing a $21,000 Three-Year