AE6 - of the company has requested construction of a new...

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Incorrect. (Computation of Present Value) Using the appropriate interest table, compute the present values of the following periodic amounts due at the end of the designated periods. (Round only the final answer to 2 decimal places.) (a) $30,000 receivable at the end of each period for 9 periods compounded at 12%. $ 159847.50 (b) $30,000 payments to be made at the end of each period for 17 periods at 9%. $ 256308.94 (c) $32,000 payable at the end of the seventh, eighth, ninth, and tenth periods at 12%. $ 51964.44 AE6-13 Correct. (Computation of Bond Liability) Lance Armstrong Inc. manufactures cycling equipment. Recently the vice president of operations
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Unformatted text preview: of the company has requested construction of a new plant to meet the increasing demand for the company's bikes. After a careful evaluation of the request, the board of directors has decided to raise funds for the new plant by issuing $2,300,000 of 11% term corporate bonds on March 1, 2007, due on March 1, 2022, with interest payable each March 1 and September 1. At the time of issuance, the market interest rate for similar financial instruments is 10%. Instructions As the controller of the company, determine the selling price of the bonds. (Round answer to zero decimal places. Hint: Use tables in text.) Selling price of bonds $ 2476789...
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This note was uploaded on 04/26/2010 for the course ACCT 320 taught by Professor Son during the Spring '10 term at Morgan.

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AE6 - of the company has requested construction of a new...

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