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Unformatted text preview: borrowed the money from a local bank. On the acquisition date, at what amount should the new asset be valued on the Johnson Products balance sheet. 4. On January 1, 2010, True Tech Inc. sold the rights to use one of its patents that will result in the receipt of royalties of $3,500 over the next 5 years and a lump sum receipt of $6,000 at the end of the sixth year. The first royalty is to be received starting December 31, 2010. What is the total present value of these payments if interest is at 8%. 5. Simon borrowed $80,000 from a local bank. The loan requires Simon to pay 10 annual installments beginning one year from today. Assuming an interest rate of 7%, what is the amount of each annual installment payment?...
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This note was uploaded on 10/25/2011 for the course ACG 3341 taught by Professor Jomosankara during the Spring '09 term at FAU.
- Spring '09