A
company must repay the bank a single payment of $21,000 cash in 2 years
for a loan it entered into. The loan is at 10% interest compounded
annually. The present value factor for 2 years at 10% is 0.8264. The
present value of the loan (closest to) is:
 | $17,354. |
| $25,200. | |
| $16,800. | |
| $21,000. | |
| $18,900. |
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