Wasp Corporation Has a Loan Agreement That Provides It with Cash

Essay

Wasp Corporation has a loan agreement that provides it with cash today, and the company must pay
$25,000 one year from today, $15,000 two years from today, and $5,000 three years from today. Wasp agrees to pay 10% interest. The following are factors from a present value table:
$$\begin{array} { l | l } & \text { Interest rate } \\\hline \text { Periods } & 10 \% \\\hline 1 & 0.9091 \\\hline 2 & 0.8264 \\\hline 3 & 0.7513\end{array}$$ What is the amount of cash that Wasp receives today?