Kleso, Intermediate Accounting, 16e sorn re. has 5355.100 t invest. The comoany
ID: 2560975 • Letter: K
Question
Kleso, Intermediate Accounting, 16e sorn re. has 5355.100 t invest. The comoany ih trying to decide between tee ahernative unes of the fundh. One abermative srovides 3,6t the and of each year for 32 as, and te other is to recetvwe a sindle lum sue sevinest ir st.32.4d af e 12 years. Which alternative should Wossom select? Assume the interest rate is constant over the enere investment osson Inc. has cemoleted the purchase of new Dell computers. The fair value of the equipment is $750,200. The pur What is the interest rate, to the nearest percent, used in disceunting this purchine t 2% sertiannualy Inc. loans meney to 1ohn Kru Corporation in the amount of $831.200 onse National Bank, shich demands terest on the note of 10% Amount received on sale of note Inc. w.shm to acondte St.344, 700 December 31, 2027. torett b inal answer to o decimal places e.g 4583813 places, e.o. 1.25124 Menuity of value of quarterly depesits Click if you would like to Show Work for this veestion Sha.workExplanation / Answer
Solution.
Selection of best investment alternatives.
Investment amount $555,100.
Option 1st.
Payment every end of year $73,659 up to 12 year.
$73,659 x 12 = $883,908.
Option 2nd .
Amount received at the end of 12th year $1,742,143.
As per above calculation Option 2nd is good.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.