Cambodia Company purchased a machinery on December 31, 2020, paying P80,000 and issuing a P240,000 noninterest bearing note agreeing to pay the balance in four equal installments of P60,000 payable each December 31. The effective interest rate at the date of purchase is assumed to be at 12%. (use 5-decimal places for the present value factor). What is the present value of the note on December 31, 2020?
Cambodia Company purchased a machinery on December 31, 2020, paying P80,000 and issuing a P240,000 noninterest bearing note agreeing to pay the balance in four equal installments of P60,000 payable each December 31. The effective interest rate at the date of purchase is assumed to be at 12%. (use 5-decimal places for the present value factor). What is the present value of the note on December 31, 2020?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Cambodia Company purchased a machinery on December 31, 2020, paying P80,000 and issuing a P240,000 noninterest bearing note agreeing to pay the balance in four equal installments of P60,000 payable each December 31. The effective interest rate at the date of purchase is assumed to be at 12%. (use 5-decimal places for the present value factor).
What is the present value of the note on December 31, 2020?
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