Question: TAKE-HOME PROBLEM SET #2: CHAPTERS 6 THROUGH 10 Page 6 of 20 S. MMMM Corporation produced waste collection equipment at a cost of $480,000 for
TAKE-HOME PROBLEM SET #2: CHAPTERS 6 THROUGH 10 Page 6 of 20 S. MMMM Corporation produced waste collection equipment at a cost of $480,000 for the ma production facility of Quinto Enterprises. Upon delivery of the equipment on January 2, 2018, MMM Corporation accepted a zero-interest note with a total face value of $1,000,000 payable in annu installments of $100,000 over ten years from Quinto Enterprises to finance the equipment. The fr annual payment of $100,000 was due from Quinto Enterprises on January 2, 2018. MMMM Corporation determined that an interest rate of 10.2% was appropriate for providing financi to Quinto Enterprises over ten years. Your Answer Compute the fair value of the sales transaction implied by the terms of the agreement. (6 points including inputs in table below) a. SUPPORTING CALCULATIONS using a Financial Calculator or Excel: FINANCIAL CALCULATOR INPUTS EXCEL Formula I/Y PV PMT FV MODE
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