What is the fair value of the note


Problem:

Last year company X exchanged a piece of land for a non-interest bearing note. The note is to be paid at the rate of $12,000 per year for 9 years, beginning one year from the date of disposal of the land. An appropriate rate of interest for the note was 11% at the time the land was originally purchase it was $90,000. What is the fair value of the note?

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Finance Basics: What is the fair value of the note
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