Viking Farms Harvests Crops in Roughly 90-Day Cycles Based on a 360-Day

Multiple Choice

Viking Farms harvests crops in roughly 90-day cycles based on a 360-day year.The firm receives payment from its harvests sometime after shipment.Due in part to the firm's rapid growth, it has been borrowing to finance its harvests using 90-day bank notes on which the firm pays 12 percent discount interest.If the firm requires R60,000 in proceeds from each note, what must be the face value of each note?

A) R61,856
B) R67,531
C) R60,000
D) R68,182
E) R67,423