# Question

1. Suppose you borrow $300,000 now at 10% interest, compounded annually. You will repay the borrowed amount plus interest in a lump sum at the end of 4 years. How much must you repay? Use Table B-1 (page A6) and the basic equation PV = future amount * conversion factor.

2. Assume the same facts as previously except that you will repay the loan in equal installments at the end of each of the 4 years. How much must you repay each year? Use Table B-2 (page A-9) and the basic equation: PV = future annual amounts * conversion factor.

2. Assume the same facts as previously except that you will repay the loan in equal installments at the end of each of the 4 years. How much must you repay each year? Use Table B-2 (page A-9) and the basic equation: PV = future annual amounts * conversion factor.

## Answer to relevant Questions

Rajgopal Company expects to receive $600 at the end of each of the next 3 years and an additional $3,500 at the end of the third year. Therefore, the total payments will be $5,300. What is the NPV of the payments at an ...On January 1, 20X1, Melbourne Company sold an asset with a book value of $250,000 for cash. Assume two selling prices: $305,000 and $230,000. For each selling price, prepare a tabulation of the gain or loss, the effect on ...The U.S. tax law is complex. Sometimes the line between tax avoidance and tax evasion is not clear. Discuss the legal and ethical implications of the following two capital investment decisions:a. A company invested in an ...Blanchard Company has an opportunity to invest $15,000 in a new automated lathe that will reduce annual operating costs by $2,300 per year and will have an economic life of 12 years.1. Suppose Blanchard Company has a ...Stallone Company is considering two possible investments, each of which requires an initial investment of $36,000. Investment A will provide a cash flow of $4,000 at the end of each year for 20 years. Investment B will ...Post your question

0