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    jusbnme's Avatar
    jusbnme Posts: 2, Reputation: 1
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    #1

    Dec 13, 2010, 08:37 PM
    Accounting
    Fishbone Corporation bought a new machine and agreed to pay for it in equal annual installments of $5,800 at the end of each of the next 10 years. Assuming that a prevailing interest rate of 9% applies to this contract, how much should Fishbone record as the cost of the machine?
    Just Looking's Avatar
    Just Looking Posts: 1,610, Reputation: 480
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    #2

    Dec 13, 2010, 09:41 PM

    You'll want to use a present value table to determine the present value of $1 per year, given the number of years and interest rate. If you want to post your answer, we can verify you understand.
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