Laramy Purchases a New Machine by Issuing an $21,000 Three-Year

Laramy purchases a new machine by issuing an $21,000 three-year note. The company will pay off the obligation by paying $7,000 at the end of each year. The market rate for obligations of this type is 8%. The present value of an annuity at 8% for three periods is 2.577097. The machine will be recorded at a cost of

A) $ 7,000.00
B) $54,119.04
C) $18,039.68
D) $21,000.00