Answer:
The amount to be paid today for the machine is $2,648.15
Explanation:
The present value can be defined as the value of money today for the future contracts. It is determined by using the discounting factor, and is affected by the number of years of the contract.
The present value is computed as follows:
[tex]\begin{aligned}\text{Present Value}&=\frac{\text{Future Value}}{1+\text{Discount rate}}*\text{number of period}\\\\&=\frac{\$32,772}{1+0.15}*18\\\\&=\$2,648.15\end{aligned}[/tex]
