A company must repay the bank $10,000 cash in 3 years for a loan.The loan agreement specifies 8% interest compounded annually.The present value factor for 3 years at 8% is 0.7938.The present value of the loan is:
A) $10,000
B) $12,400
C) $7,938
D) $9,200
E) $7,600
Correct Answer:
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