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A company has just sold a product with the following payment plan: $75,000 today, $50,000 at the end of year 1, and $25,000 at the end of year two. If the payments
Are deposited into an account earning 4.5% per year, calculate the present value for the cash flow.
Book Value
The net value of an asset or liability according to its balance sheet account balance, accounting for factors like depreciation.
Note Payable
A written promissory note in which one party agrees to pay another party a definite sum of money either on demand or at a specified future date.
Capital Account
This account records the investments made by owners or shareholders into a company, along with retained earnings and accumulated other comprehensive income.
Capital Balances
The amount of money that partners or owners have invested in a business, often reflected in the equity section of the balance sheet.
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