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 $60,000 in proceeds from each note, what must be the face value of each note?

A) $61,856
B) $67,531
C) $60,000
D) $68,182
E) $67,423