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Mohammed Nadeem
Accountant
Vi Sigma Apparel Group FZE
Abu Dhabi
United Arab Emirates
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Original Message:
Sent: 06-02-2021 09:20 AM
From: Nanditha James
Subject: END/ BEGINNING OF THE YEAR PAYMENTS
Hi All,
Can someone explain how the end of the year and beginning-of-the-year payments affect cash flow?
Reference question
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
Answer: 3465
Regards