Perdue Company Has Purchased Equipment That Requires Annual Payments of $30,000

Multiple Choice

Perdue Company has purchased equipment that requires annual payments of $30,000 to be paid at the end of each of the next six years.The appropriate discount rate is 12%.What amount will be used to record the equipment?

A) $180,000
B) $123,342
C) $165,772
D) $115,650