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Anderson Company Has Purchased Equipment That Requires Annual Payments of $20,000

Question 180

Multiple Choice

Anderson Company has purchased equipment that requires annual payments of $20,000 to be paid at the end of each of the next 6 years. The discount rate is 12%. What amount will be used to record the equipment?


A) $120,000
B) $82,220
C) $110,515
D) $77,100

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