Samos, Inc. purchased certain plant assets under a deferred payment contract. The agreement was to pay $75,000 at year-end for each of the next three years. The plant assets should be valued at

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The correct valuation of plant assets acquired under a deferred payment contract is the present value of the annuity payments, discounted at the market interest rate. This reflects the time value of money, where future payments are worth less in today's dollars.