Rearden Metal needs to order a new blast furnace that will be delivered in one...
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Accounting
Rearden Metal needs to order a new blast furnace that will be delivered in one year. The $1,000,000 price for the blast furnace is due in one year when the new furnace is installed. The blast furnace manufacturer offers Rearden Metal a discount of $60,000 if they pay for the furnace now. If the interest rate is 7%, then the NPV of paying for the furnace now is closest to:
($5,421)
($6,729)
$6,729
$5,421
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