Cooper Company Has Purchased Equipment That Requires Annual Payments of $18,000

Multiple Choice

Cooper Company has purchased equipment that requires annual payments of $18,000 to be paid at the end of each of the next 6 years. The discount rate is 8%. The present value of $1 for six periods at 8% is 0.630. The present value of an ordinary annuity of $1 for six periods at 8% is 4.623. What amount will be assigned to the equipment? (Round your final answer to the nearest dollar.)

A) $3894
B) $83,214
C) $94,554
D) $108,000