Use present value tables to show how the total bond issuance proceeds of $$85,039$ were determined in item $17$ by calculating the present value of $($a$)$ the $$94,000$ face value and $($b$)$ the annual interest payments. 

 

Rather than issue bonds to obtain cash for purchasing new equipment, OPC could have saved up and invested cash over several years. If OPC can earn $7$ percent interest compounded annually. 

What single lump sum would it have to invest now to reach $$102,000$ in three years? 

 

 Instead of investing one large amount of cash, OPC could invest equal amounts over the next three years. If OPC can earn $7$ percent interest compounded annually.

How much cash would OPC need to invest equally at the end of each of the next three years to have saved $$102,000?$ 

 

$($For all requirements, Use appropriate factor$($s$)$ from the tables provided and final answer to the nearest whole dollar amount.$)($Future Value of $$1,$ Present Value of $$1,$ Future Value Annuity of $$1,$ Present Value Annuity of $$1)$

Answer rating: 100% (QA)

Okay lets solve this stepbystep 1 Present value of the 94000 face value of the bonds Face value 9400... View the full answer