Archer Company issued $4,000,000 par value, 7% convertible bonds at 99 for cash. The net present value
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Archer Company issued $4,000,000 par value, 7% convertible bonds at 99 for cash. The net present value of the debt without the conversion feature is $3,800,000. Prepare the journal entry to record the issuance of the convertible bonds.
Net Present ValueWhat is NPV? The net present value is an important tool for capital budgeting decision to assess that an investment in a project is worthwhile or not? The net present value of a project is calculated before taking up the investment decision at...
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Cash 4000000 X 99 3960000 Bonds Pay...View the full answer
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Jehal Shah
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