A Company Must Repay the Bank a Single Payment of $20,000

Multiple Choice

A company must repay the bank a single payment of $20,000 cash in 3 years for a loan it entered into.The loan is at 8% interest compounded annually.The present value factor for 3 years at 8% is 0.7938.The present value of the loan (rounded) is:

A) $15,877.
B) $12,400.
C) $5,592.
D) $9,200.
E) $47,630.