Use the following information extracted from present and future value tables to answer Type of Table Number of Periods Interest Rate Factor Future Value of $1 3 8 1 25971 Future Value of $1 6 4 1 26532 Future Value of $1 12 2 1 26842 Present Value of $1 3 8 0 79383 Present Value of $1 12 8 0 39711 Present Value of $1 12 2 0 78849 Present Value of Annuity of $1 in Arrears 3 8 2 57710 Present Value of Annuity of $1 in Arrears 3 2 2 88388 Present Value of Annuity of $1 in Arrears 12 2 10 57534 Future Value of Annuity of $1 in Arrears 3 8 3 24640 Future Value of Annuity of $1 in Arrears 3 2 3 06040 Future Value of Annuity of $1 in Arrears 12 2 13 41209 A non interest bearing note that pays $5,000 three years from today is issued in exchange for used equipment Which of the following amounts would be recorded as the acquisition value of the equipment, the amount the note is worth today if the discount rate appropriate for such notes is 8 per annum Multiple Choice $6,299 $3,969 $3,942 $1,940 None of the other alternatives are correct

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Question: Use the following information extracted from present and future value tables to answer: Type of Table Number of Periods Interest Rate Factor Future Value of

Use the following information extracted from present and future value tables to answer:

Type of Table	Number of Periods	Interest Rate		Factor
Future Value of $1	3	8	%	1.25971
Future Value of $1	6	4	%	1.26532
Future Value of $1	12	2	%	1.26842
Present Value of $1	3	8	%	0.79383
Present Value of $1	12	8	%	0.39711
Present Value of $1	12	2	%	0.78849
Present Value of Annuity of $1 in Arrears	3	8	%	2.57710
Present Value of Annuity of $1 in Arrears	3	2	%	2.88388
Present Value of Annuity of $1 in Arrears	12	2	%	10.57534
Future Value of Annuity of $1 in Arrears	3	8	%	3.24640
Future Value of Annuity of $1 in Arrears	3	2	%	3.06040
Future Value of Annuity of $1 in Arrears	12	2	%	13.41209

A non interest-bearing note that pays $5,000 three years from today is issued in exchange for used equipment. Which of the following amounts would be recorded as the acquisition value of the equipment, the amount the note is worth today if the discount rate appropriate for such notes is 8% per annum?

Multiple Choice

$6,299

$3,969

$3,942

$1,940

None of the other alternatives are correct

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