ACC296 Homework Assignment 6

ACC296 Homework Assignment 6 - $6,000 X 7.84314=$47,058.84

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BE6-15 $140,000 x 6.71008 = $939,411 $2,000,000 x .46319 = $926,380 $939,411 + 926,380 = $1,865,791 E6-7 Computation of Bond Prices (a) $100,000 X .31524 = $31,524 $10,000 X 8.55948 = $85,594.80 $31,524 + 85,594.80 = $117,118.80 (b) $100,000 X .23939 = $23,939 $10,000 X 7.60608 = $76,060.80 $23,939 + 76,060.80 = $99,999.80 (c) $100,000 x .18270 = $18,270 $10,000 X 6.81086 = $68,108.60 $18,270 + 68,108.60 = $86,378.60 E6-12 Analysis of Alternatives Building A-PV=$610,000 Building B-PV=$614,902.40 $70,000 X 8.78432 = $614,902.40 Building C-PV=$47,058.84
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Unformatted text preview: $6,000 X 7.84314=$47,058.84 $650,000-47,058.84=$602,941.16 Lease Building C since its present value of its net cost is the smallest. E6-13 Computation of Bond Liability I= E6-14 Computation of Pension Liability PV-OA=$800,000(10.67478-8.55946) PV-OA=$800,000(2.11530) PV-OA=$1,692,240 PV of pension liability P6-1 Various Time Value Situations (c) PV-OA=$4,000(6.71008)=$26,840.32 as the cost of machine (d) PV-OA=$5,000(4.96764)=$24,838.20 Cost of machine=$20,000 + $24,838.20 = $44,838.20...
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