not want to borrow any more cash. Supplier No. 1 agrees to settle the account...
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Accounting
not want to borrow any more cash. Supplier No. 1 agrees to settle the account in one of two ways: Option 1: Pay $4,000 now and $18,750 when some large projects are finished, two years from today. Option 2: Pay $25,000 three years from today, when even larger projects are finished. Assuming that the only factor in the decision is the cost of money (8\%). What is the present value of alternative 1 ? 19,85520,07525,40021,300
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