Crown corporation has agreed to sell some used computer equipment to Bob Parsons, one of the company's employees, for $5,000. Crown and Parsons have been discussing alternative financing arrangements for the sale.
Crown Corporation has offered to accept a $1,000 down payment and set up a note receivable for Bob Parsons that calls for a $1,000 payment at the end of each of the next 4 years. If Crown uses a 6% discount rate, the present value of the note receivable would be
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