E9-13(Algo) Computing Four Present Value Problems LO 9-7 On January 1 of this...
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EAlgo Computing Four Present Value Problems LO On January of this year, Skamania Company completed the following transactions assume a annual interest rate: FV of $ PV of $ FVA of $ and PVA of $ Note: Use the appropriate factors from the tables provided. a Bought a delivery truck and agreed to pay $ at the end of three years. b Rented an office building and was given the option of paying $ at the end of each of the next three years or paying $ immediately. c Established a savings account by depositing a single amount that will increase to $ at the end of seven years. d Decided to deposit a single sum in the bank that will provide equal annual yearend payments of $ to a retired employee payments starting December of this year Required: a What is the cost of the truck that should be recorded at the time of purchase? b Which option for the office building results in the lowest present value? c What single amount must be deposited in this account on January of this year? d What single sum must be deposited in the bank on January of this year? 
EAlgo Computing Four Present Value Problems LO
On January of this year, Skamania Company completed the following transactions assume a annual interest rate: FV of $ PV
of $ FVA of $ and PVA of $
Note: Use the appropriate factors from the tables provided.
a Bought a delivery truck and agreed to pay $ at the end of three years.
b Rented an office building and was given the option of paying $ at the end of each of the next three years or paying
$ immediately.
c Established a savings account by depositing a single amount that will increase to $ at the end of seven years.
d Decided to deposit a single sum in the bank that will provide equal annual yearend payments of $ to a retired
employee payments starting December of this year
Required:
a What is the cost of the truck that should be recorded at the time of purchase?
b Which option for the office building results in the lowest present value?
c What single amount must be deposited in this account on January of this year?
d What single sum must be deposited in the bank on January of this year?
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