Make one lump-sum payment of 1560000 two years from date of, Ask an Expert

Accounting

1.Pay $950,000 in cash immediately.

2. Pay $420,000 immediately and the remainder in 12 annual installments of $81,000, with the first installment due in one year.

3. Make 12 annual installments of $140,000 with the first payment due immediately.

4. Make one lump-sum payment of $1,560,000 two years from date of purchase.

Required:

(a) Determine the present value, assuming that Harding can borrow funds at an 4% interest rate.

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M9420102

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