Afterthought Construction Co

question 18

True/False

Afterthought Construction Co. is about to sell some used equipment to ABC Leasing. ABC has offered the following two payment schemes: a) $50,000 now and $200,000 at the end of seven years or b) $50,000 now, $50,000 at the end of two years, $50,000 at the end of five years, and $150,000 at the end of ten years. If the applicable discount rate for either transaction is 8%, the net present value of option a) is $166,700 and b) $196,375.

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The action of calling public attention to products, services, or events, often through paid announcements by an identified sponsor.

Debit

The left side of an account.

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Money in the form of coins or banknotes, especially that held by an organization or individual.