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A company must repay the bank $10,000 cash in 3 years for a loan it entered into. The loan is at 8% interest compounded annually.

A company must repay the bank $10,000 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 is:

A. $10,000

B. $12,400

C. $ 7,938

D. $ 9,200

E. $ 7,600

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