Foley Company Financed the Purchase of a Machine by Making

Multiple Choice

Foley Company financed the purchase of a machine by making payments of $18,000 at the end of each of five years.The appropriate rate of interest was 8%.The future value of one for five periods at 8% is 1.46933.The future value of an ordinary annuity for five periods at 8% is 5.8666.The present value of an ordinary annuity for five periods at 8% is 3.99271.What was the cost of the machine to Foley?

A) $26,448
B) $71,869
C) $90,000
D) $105,600