Time value multiplier
January 19th, 2023
On May 1, 2004 a company purchased a new machine which it does not have to pay for until May 1, 2006. The total payment on May 1, 2006 will include both principal and interest. Assuming interest at a 10% rate, the cost of the machine would be the total payment multiplied by what time value of money factor?
a. Future value of annuity of 1
b. Future value of 1
c. Present value of annuity of 1
d. Present value of 1