A company must repay the bank a single payment of $10,000 cash in 3 years for a loan it entered into. The loan is at 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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