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Unformatted text preview: 610 a. Interest is compounded semiannually. Every 6 months x 5 years = 10 periods @ 16% =.2267 x 100000 = $22,670 b. Interest is compounded quarterly. Every 4 months x 5 years = 20 periods @ 16% = .0514 x $100,000 = $5,150 c. A discount rate of 12% is used. Every 4 months x 5 years = 20 periods @ 12% = .1037 x $100,000 = $5,150 = $10,370 d. A discount rate of 20% is used. Every 4 months x 5 years = 20 periods @ 20% = .0261 x $100,000 = $2,610 e. The cash will be received in three years. 3 periods @ 16% = .6407 x $100,000 = 64,070 f. The cash will be received in seven years. 7 periods @ 16% = .3538 x $100,000 = 35,380 George Garza Accounting 2311 Chapter 6 Homework Due Tuesday 612 A. $450,000  $300,000 = $150,000 B. $90,000/$450,000 = .2 C. ? D. They may be a competitor or own a Brand name that Takeover wants no matter what the cost....
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This note was uploaded on 11/10/2010 for the course ACCT 2311 taught by Professor Hayres during the Fall '10 term at University of the Incarnate Word.
 Fall '10
 hayres
 Accounting

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