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Shin Company Has a Loan Agreement That Provides It with Cash

Question 123

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Shin Company has a loan agreement that provides it with cash today.The company must repay this loan in four years with $25,000.Shin agrees to a 6% interest rate.The present value factor for four periods,6%,is 0.7921.What is the amount of cash that Shin Company receives today?

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$25,000 x ...

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