E$6\mathrm{.}18($LO $4)($Least Cosily Payoff$)$ Assume that Sonic Foundry Corpora can either make immediate payment of $$2,600,000,$ or it can make annual poration has a contractual debt outstanding. Sonic has available two means of settlement. It Instructions

Which method of payment do you recommend, assuming an expected effective interest rate of $8\%$ during the future period?

E$6\mathrm{.}19($LO $4)($Least Costly Payoff$)$ Assuming the same facts as those in E$6\mathrm{.}18$ except that the payments must begin now and be made on the first day of each of the $15$ years, what payment method would you recommend?

E$6\mathrm{.}20($LO $5)($Expected Cash Flows$)$ For each of the following, determine the expected cash flows.

Cash Flow Probability

Estimate Assessment

b$.$ $$5,400,30\%$

$7,200,50\%$

$8,400,20\%$

c$.$ $$(1,000),10\%$

$3,000,80\%$

$5,000,10\%$