Jenks Company financed the purchase of a machine by making payments of $10,000 at the end of

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Question:

Jenks Company financed the purchase of a machine by making payments of $10,000 at the end of each of 5 years. The appropriate rate of interest was 8%. The future value of 1 for 5 periods at 8% is 1.46933. The future value of an ordinary annuity for 5 periods at 8% is 5.8666. The present value of an ordinary annuity for 5 periods at 8% is 3.99271. What was the cost of the machine to Jenks?

a. $14,794.

b. $39,927.

c. $50,000.

d. $58,6671