You Have Been Asked to Compute the Cash Equivalent Price

Multiple Choice

You have been asked to compute the cash equivalent price of a machine assuming the cost (including principal and interest) is to be paid in two unequal payments after the acquisition date.Which of the following table values would be used to find the cost of the machine?

A) Present value of a single amount.
B) Present value of an annuity.
C) Future value of a single amount.
D) Future value of an annuity.