How much money can you borrow today base on future repayment, Financial Accounting

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How much money can you borrow today base on future repayment

Problem

Your company is seeking to borrow money today to finance a business vehicle. The business can make the following repayments at an interest cost of 5% per annum: year 1 = $5000; year 2 = $6500; year 3 = $7000. How much money can you borrow today based on these future repayments?

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Financial Accounting: How much money can you borrow today base on future repayment

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Financial Accounting: How much money can you borrow today base on future repayment

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