This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.
View Full Document
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....
View Full
Document
 Fall '10
 hayres
 Accounting

Click to edit the document details