Ducky Company purchased a machine that requires annual payments of $25,000 to be paid at the end of each of the next seven years. The discount rate is 8%. What amount will be used to record the machine?

Name: Ducky Company purchased a machine that requires annual payments of $25,000 to be paid at the end of each of the next seven years. The discount rate is 8%. What amount will be used to record the machine?
Brand: Quizplus
Rating: 4.8 (57 reviews)

Question

Quizplus · Accepted Answer

$25,000 x 5.20637 =$130,159
(Annuity x PVAF, n=7, i=8%) = PV

Ducky Company Purchased a Machine That Requires Annual Payments of $25,000