E9-13 (Algo) Computing Four Present Value Problems LO 9-7 On January 1 of this year, Shannon Company completed the following transactions (assume a 9% annual interest rate): (EV of $1. PV of $1, EVA of $1, and PVA of S1) (Use the appropriate factor(s) from the tables provided.) a. Bought a delivery truck and agreed to pay $60,700 at the end of three years. b. Rented an office building and was given the option of paying $10,700 at the end of each of the next three years or paying $28,700 immediately. c. Established a savings account by depositing a single amount that will increase to $91,400 at the end of seven years. d. Decided to deposit a single sum in the bank that will provide 9 equal annual year-end payments of $40,700 to a retired employee (payments starting December 31 of this year). Required: a. What is the cost of the truck that should be recorded at the time of purchase? (Round your answer to nearest whole dollar.) Cost of the truck $ 153,650 b. Which option for the office building results in the lowest present value? Pay in three installments O Pay in single instaliment c. What single amount must be deposited in this account on January 1 of this year? (Round your answer to nearest whole dollar.) Amount to deposit < Prev 5 of 10 Next >