On June 1, 2021, Company Y purchased a new machine on credit. The total payment,...
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Accounting
On June 1, 2021, Company Y purchased a new machine on credit. The total payment, which includes the principal and interest, will be due on June 1, 2023. Assuming effective interest rate of 10%, the cost of the machine would be the total payment multiplied by which of the following time value of money concept?
- A. Present value of $1.
- B. Future amount of $1.
- C. Future amount of annuity of $1.
- D. Present value of annuity of $1.
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