Hi expart Provide answer of this accounting question If an organization has an obligation to pay $5,000to a supplier two years from now, the present valueof the obligation:a) is less than $5,000.b) is $5,000.c) is more than $5,000.d) could be calculated using an annuity factor fromthe present value tables.

Step 1:Define VariablesStep 2:Apply FormulaStep 3:Compare Present Value with Future Value Note: •…

Answered: If an organization has an obligation to…

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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If an organization has an obligation to pay $5,000 to a supplier two years from now, the present value of the obligation: a) is less than $5,000. b) is $5,000. c) is more than $5,000. d) could be calculated using an annuity factor from the present value tables.