Samos, Inc purchased certain plant assets under a deferred payment contract. The agreement was to pay $75,000 at year-end for each of the next three years. The plant assets should be valued at
A) present value of a $75,000 annuity for three years discounted at the bank prime interest rate.
B) $225,000.
C) present value of a $75,000 annuity for three years discounted at the market interest rate.
D) $225,000 plus imputed interest.
C
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