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Problem:

Ferris, Inc., has borrowed from their bank at a rate of 8 percent and will repay the loan with interest over the next five years. Their scheduled payments, starting at the end of the year are as follows $450,000, $560,000, $750,000, $875,000, and $1,000,000.

Required:

Question: What is the present value of these payments?

Note: Show supporting computations in good form.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91171274

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