Question

Norman Company has purchased equipment that requires annual payments of $20,000 to be paid at the end of each of the next 6 years. The appropriate discount rate is 12%. What amount will be used to record the equipment?

Answer 1

@doodal please help

Answer 2

It's a calculation of present value of future cash flows.
PV=$20,000*(1/1.12+1/1.12^2+...+1/1.12^6)
=$82,228.15

Answer 3

thanks:)

Answer 4

NP