1) A company received two bids to change its building a) 5 years with quarter payment...

  

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1) A company received two bids to change its building a) 5 years with quarter payment of 20,000 to be made at the begging of each period. (8%) b) payment cash $70,000 now and 22,000 at the end of each six months for the following 6 years (12%) Which when the company will choose and why? 2) A company want to purchase a land, there is no money available to purchase cash, there are two options available for the company: A) issue 2,000,000 of 8% bonds for five years, Interest payable semiannually at the end of the period, 1 July and 1 January, interest rate at market is 12%. B) Leas with a payment 120,000 at beginning of each six months for 10 years (8%) Which when the company will choose and why? 1) A company received two bids to change its building a) 5 years with quarter payment of 20,000 to be made at the begging of each period. (8%) b) payment cash $70,000 now and 22,000 at the end of each six months for the following 6 years (12%) Which when the company will choose and why? 2) A company want to purchase a land, there is no money available to purchase cash, there are two options available for the company: A) issue 2,000,000 of 8% bonds for five years, Interest payable semiannually at the end of the period, 1 July and 1 January, interest rate at market is 12%. B) Leas with a payment 120,000 at beginning of each six months for 10 years (8%) Which when the company will choose and why?

Answer rating: 100% (QA)

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