An accounting firm agrees to purchase a computer for $170,000 (cash on delivery) and the delivery...

Question

Question

An accounting firm agrees to purchase a computer for $170,000 (cash on delivery) and the delivery date is in 270 days. How mu

Answer 1

Answer #1

This is a question to calculate Present Value, as value today needs to be calculated,

Time Period = 270/90 = 3 quarters

Present Value = Future Value/(1 + r)ⁿ

Present Value = 170,000/(1 + 0.0055/4)³

Present Value = $169,300.67

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Answer 2

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