Exercise C-7 (Algo) Calculate the present value of a single amount (LO C-3) You have entered into an agreement for the purchase of land. The agreement specifies that you will take ownership of the land immediately. You have agreed to pay $32,000 today and another $32,000 in three years. Calculate the total cost of the land today. assuming a discount rate of (a) 4%, (b) 6%, or (c) 8%. (FV of $1. PV of $1. EVA of S1, and PVA of $1) (Use tables, Excel, or a financial calculator. Round your answers to 2 decimal places.) a b. C Payment Amount $ 32,000 32,000 32,000 Interest Rate Compounding Period Due 3 years 3 years 3 years Annually 496 6% Annually 89 Annually Total Cost of Land Today

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A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.