Jenks Company Financed the Purchase of a Machine by Paying

question 68

Multiple Choice

Jenks Company financed the purchase of a machine by paying $37,000 a year for the next five years, with the first payment due one year from today. The purchase cost of the machine is considered to be the present value of those payments. What was the purchase cost of the machine to Jenks assuming a discount rate of 7%? (Use spreadsheet software or a financial calculator to calculate your answer. Do not round any intermediary calculations, and round your final answer to the nearest dollar.)

• A) $185,000
• B) $151,707
• C) $162,327
• D) $26,380

---

Definitions:

Causes

The reasons or explanations for an event or action, indicating why something happens.

Consequences

Consequences are the results or effects that naturally follow an action or condition, impacting outcomes and decisions.

Competitive Advantage

A unique attribute or capability that enables an organization to outperform its competitors.

Human Resources

A department within an organization that handles recruitment, management, and direction for the people who work in the organization.