Please explain how to get the PV factor thank you!
Answer | |
alternative 1 |
Present value under alternative 1=$25,19,000 |
alternative 2 | Present value under alternative 2=$308,100*Present value of annuity factor(9%,15) |
308,100*8.060688 | |
$2,483,498 (approx) | |
Hence option 2 is better involving lesser present values. | |
Please explain how to get the PV factor thank you! Question 3 --/1 View Policies Current...
Question 2 Assume that Sonic Foundry Corporation has a contractual debt outstanding. Sonic has available two means of settlement. It can either make immediate payment of $2,833,000, or it can make annual payments of $347,200 for 15 years, each payment due on the last day of the year. Click here to view factor tables Which method of payment do you recommend, assuming an expected effective interest rate of 9% during the future period? (Round factor values to 5 decimal places,...
Question 3 View Policies Current Attempt in Progress What would you pay for a $175,000 debenture bond that matures in 15 years and pays $8,750 a year in interest if you wanted to earn a yield of: Click here to view factor tables. 2%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 458,581.) Amount to Pay $ e Textbook and Media 3%? (Round factor values to 5 decimal places, e.g. 1.25124...
Question 2 View Policies Current Attempt in Progress Using the appropriate interest table, compute the present values of the following periodic amounts due at the end of the designated periods. Click here to view factor tables $53,490 receivable at the end of each period for 8 periods compounded at 11%. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 458,581.) Present value $ e Textbook and Media Click here to view factor...
Current Attempt in Progress Henry Taylor is settling a $19,420 loan due today by making 6 equal annual payments of $4,329.10. Click here to view factor tables What payments must Henry Taylor make to settle the loan at an interest rate of 9%, but with the 6 payments beginning on the day the loan is signed? (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to decimal places, eg. 458,581) Payments $
Question 5 0/1 View Policies Show Attempt History Current Attempt in Progress 4 Your answer is incorrect. Cullumber Corporation issues $520,000 of 9% bonds, due in 10 years, with interest payable semiannually. At the time of issue, the market rate for such bonds is 10%. Click here to view factor tables. Compute the issue price of the bonds. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to O decimal places e.g. 58,971.) Issue...
Current Attempt in Progress What would you pay for a $125,000 debenture bond that matures in 15 years and pays $6,250 a year in interest if you wanted to earn a yield of: Click here to view factor tables 2%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 458,581.) Amount to Pay $ e Textbook and Media 3%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to...
Question 1 View Policies Current Attempt in Progress Usire the appropriate interest table.answer each of the followine questions. Each case is independent of the others! Click here to view factor tables What is the future value of $7.980 at the end of 9 periods at % compounded interest Round factories to 5 deomal places, eg. 1.25124 and final answer to dea mai places, eg. The future value $ eTextbook and Media Click here to view factor tables What is the...
What is the future value of $8,650 at the end of 7 periods at 8% compounded interest? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) The future value $ Click here to view factor tables What is the present value of $8,650 due 8 periods hence, discounted at 6%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) The present value...
Please explain how you get the PV. * Question 7 On January 1, Pina Corporation issues a $130,000, 10-year non-interest bearing note to Camden Production for new machinery. The market interest rates the new machinery in cash is not available from the supplier at this time. and Camden is to pay $13,000 instalments at the end of each year Fair value for a purchase of Click here to view the factor table PRESENT VALUE OF 1. Click here to view...
Question 5 --12 View Policies Current Attempt in Progress You are buying a sofa. You will pay $200 today and make three consecutive annual payments of $300 in the future. The real rate of return is 20.0 percent, and the expected inflation rate is 4 percent. What is the actual price of the sofa? (Do not round factor values. Round final answer to 2 decimal places, e.g. 15.25.) Actual price $