A Machine Is Purchased by Making Payments of $8,000 at the Beginning

Multiple Choice

A machine is purchased by making payments of $8,000 at the beginning of each of the next five years. The interest rate was 10%. The future value of an ordinary annuity of 1 for five periods is 6.10510. The present value of an ordinary annuity of 1 for five periods is 3.79079. What was the cost of the machine?

A) $53,725
B) $48,841
C) $33,359
D) $30,327