Please explain how to get the PV factor thank you!
Homework Answers
| 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. | |
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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...
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,...
Assume that Sonic Foundry Corporation has a contractual debt outstanding. Sonic has available two means of...
Assume that Sonic Foundry Corporation has a
contractual debt outstanding. Sonic has available two means of
settlement. It can either make immediate payment of $2,458,000, or
it can make annual payments of $336,800 for 15 years.
Click here to view factor tables
Payments must begin now and be made on the first day of each of the
15 years, what payment method would you recommend assuming an
expected effective-interest rate of 11% during the future period?
(Round factor values to...
Exercise 6-18 Assume that Sonic Foundry Corporation has a contractual debt outstanding. Sonic has available two...
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Please explain how you get the PV. * Question 7 On January 1, Pina Corporation issues...
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...
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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,...
Assume that Sonic Foundry Corporation has a
contractual debt outstanding. Sonic has available two means of
settlement. It can either make immediate payment of $2,458,000, or
it can make annual payments of $336,800 for 15 years.
Click here to view factor tables
Payments must begin now and be made on the first day of each of the
15 years, what payment method would you recommend assuming an
expected effective-interest rate of 11% during the future period?
(Round factor values to...
Exercise 6-18 Assume that Sonic Foundry Corporation has a contractual debt outstanding. Sonic has available two means of settlement. It can either make immediate payment of $2,072,000, or it can make annual payments of $283,200 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 11% 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...
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View Policies Current Attempt in Progress What would you pay for a $220,000 debenture bond that matures in 15 years and pays $11,000 a year in interest if you wanted to earn a yield of: Click here to view factor tables. (a) 326? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to decimal places, es. 458,581.) Amount to Pay
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 $
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...
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