Hello,

I am not understanding how I can determine the present value and the value of equipment.. I've tried to add the down payment plus the five installments with added interest.

On June 30, 2021, the Johnstone Company purchased equipment from Genovese Corp. Johnstone agreed to pay Genovese $13,000 on the purchase date and the balance in five annual installments of $5,000 on each June 30 beginning June 30, 2022. Assuming that an interest rate of 10% properly reflects the time value of money in this situation, at what amount should Johnstone value the equipment? (Round your final answers to nearest whole dollar amount.) Show less A Table values are based on: n = 5 0 i= 10% V Cash Flow Amount Present Value Installments 69 5,000 $ 38,000 x Down Payment 13,000 13,000 Value of the equipment $ 27,500 x