Sonata Corporation will receive $40,000 today (January 1, 2012), and als For the next five years (2013-2017). What is the present value of the six assuming a 12% interest rate?

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Question 18
Sonata Corporation will receive $40,000 today (January 1, 2012), and also on each January 1st
for the next five years (2013-2017). What is the present value of the six $40,000 receipts,
assuming a 12% interest rate?
a. $164,456.
b. $184,191.
c. $324,608.
d. $363,560.
40,000 x.
Transcribed Image Text:Question 18 Sonata Corporation will receive $40,000 today (January 1, 2012), and also on each January 1st for the next five years (2013-2017). What is the present value of the six $40,000 receipts, assuming a 12% interest rate? a. $164,456. b. $184,191. c. $324,608. d. $363,560. 40,000 x.
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