Wasp Corporation has a loan agreement that provides it with cash today, and the company must pay
$25,000 one year from today, $15,000 two years from today, and $5,000 three years from today. Wasp agrees to pay 10% interest. The following are factors from a present value table:
$$\begin{array} { l | l }
& \text { Interest rate } \
\hline \text { Periods } & 10 \% \
\hline 1 & 0.9091 \
\hline 2 & 0.8264 \
\hline 3 & 0.7513
\end{array}$$ What is the amount of cash that Wasp receives today?

Question

Wasp Corporation has a loan agreement that provides it with cash today, and the company must pay
$25,000 one year from today, $15,000 two years from today, and $5,000 three years from today. Wasp agrees to pay 10% interest. The following are factors from a present value table:
 $$\begin{array} { l | l } 
& \text { Interest rate } \
\hline \text { Periods } & 10 \% \
\hline 1 & 0.9091 \
\hline 2 & 0.8264 \
\hline 3 & 0.7513
\end{array}$$ What is the amount of cash that Wasp receives today?

Quizplus · Accepted Answer

The Answer of Wasp Corporation has a loan agreement that provides it with cash today, and the company must pay
$25,000 one year from today, $15,000 two years from today, and $5,000 three years from today. Wasp agrees to pay 10% interest. The following are factors from a present value table:
 $$\begin{array} { l | l } 
& \text { Interest rate } \
\hline \text { Periods } & 10 \% \
\hline 1 & 0.9091 \
\hline 2 & 0.8264 \
\hline 3 & 0.7513
\end{array}$$ What is the amount of cash that Wasp receives today?

Wasp Corporation Has a Loan Agreement That Provides It with Cash