Question: On 12-31-19, Acme entered into an agreement that required Acme to pay someone $500,000 on 12-31-31. Assume the appropriate market rate of interest for Acme

On 12-31-19, Acme entered into an agreement that required Acme to pay someone $500,000 on 12-31-31. Assume the appropriate market rate of interest for Acme was 8%.

a. As of 12-31-19, what was the present value of Acme’s obligation?

b. As of 12-31-24, what was the present value of Acme’s obligation?

c. As of 12-31-30, what was the present value of Acme’s obligation?

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