1 2 3 4 5 6 PV of $1 0.90090 0.81162 0.73119 0.65873 0.59345 0.53464 FV of $1 1.11000 1.23210 1.36763 1.51807 1.68506 1.87041 PVA of $1 0.90090 1.71252 2.44371 3.10245 3.69590 4.23054 FVA of $1 1.0000 2.1100 3.3421 4.7097 6.2278 7.9129 Polo Publishers purchased a multi-color offset press with terms of $95,000 down and a noninterest-bearing note requiring payment of $80,000 at the end of each year for five years. The interest rate implicit in the purchase contract is 11%. Polo would record the asset at:
1 2 3 4 5 6 PV of $1 0.90090 0.81162 0.73119 0.65873 0.59345 0.53464 FV of $1 1.11000 1.23210 1.36763 1.51807 1.68506 1.87041 PVA of $1 0.90090 1.71252 2.44371 3.10245 3.69590 4.23054 FVA of $1 1.0000 2.1100 3.3421 4.7097 6.2278 7.9129 Polo Publishers purchased a multi-color offset press with terms of $95,000 down and a noninterest-bearing note requiring payment of $80,000 at the end of each year for five years. The interest rate implicit in the purchase contract is 11%. Polo would record the asset at:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Present and future value tables of 1 at 11% are presented below.
1
2
3
4
56
Multiple Choice
O
PV of $1
0.90090
0.81162
0.73119
0.65873
0.59345
0.53464
O
Polo Publishers purchased a multi-color offset press with terms of $95,000 down and a
noninterest-bearing note requiring payment of $80,000 at the end of each year for five
years. The interest rate implicit in the purchase contract is 11%. Polo would record the
asset at:
O
$351,110.
$390,672.
$175,000.
FV of $1
1.11000
1.23210
1.36763
1.51807
1.68506
1.87041
$295,672.
PVA of $1
0.90090
1.71252
2.44371
3.10245
3.69590
4.23054
FVA of $1
1.0000
2.1100
3.3421
4.7097
6.2278
7.9129
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