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Ronan Industries needed to buy a piece of equipment, so it was financed for five...

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Accounting

Ronan Industries needed to buy a piece of equipment, so it was financed for five years with payments of $20,000 at the end of each year. The rate of interest was 8% with the future value of 1 for five periods at 8% was 1.46933. The present value of the ordinary annuity for these same five periods is 3.99271, and the future value of an ordinary annuity is 5.8666. The machine will cost Ronan Industries a total of

  • A : $29,588.

  • B : $117,334.

  • C : $100,000.

  • D : $79,854.

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