etermine the amount and type of financing component in the following contracts. (Click the icon to view the independent contracts.) Payment of $2,200,000 occurs nine years after delivery when the interest rate is 5%. (Use the present value and future value tables, a finane and future value tables, use factor amounts rounded to five decimal places, XXXXXX Round your final answer to the nearest whole dollar) Amount Financing Component Interest Revenue 1,418,140 Payment of $2,200,000 occurs nine years before delivery when the interest rate is 5%. (Use the present value and future value tables, a fina and future value tables, use factor amounts rounded to five decimal places, XXXXXXX Round your final annanr to the nearest whole dollar) Financing Component Amount nterest Expense Independent contracts Delivery is twelve years after payment of $1,200,000 when the interest rate is 10%. (Use the p sture value tables, use factor amounts rounded to five decimal places, X.XXXXX. Round your fir Financing Component Amount a. Payment of $2,200,000 occurs b. Payment of $2,200,000 occurs n e. Delivery is twelve years after par d. Delivery is twelve a before c
etermine the amount and type of financing component in the following contracts. (Click the icon to view the independent contracts.) Payment of $2,200,000 occurs nine years after delivery when the interest rate is 5%. (Use the present value and future value tables, a finane and future value tables, use factor amounts rounded to five decimal places, XXXXXX Round your final answer to the nearest whole dollar) Amount Financing Component Interest Revenue 1,418,140 Payment of $2,200,000 occurs nine years before delivery when the interest rate is 5%. (Use the present value and future value tables, a fina and future value tables, use factor amounts rounded to five decimal places, XXXXXXX Round your final annanr to the nearest whole dollar) Financing Component Amount nterest Expense Independent contracts Delivery is twelve years after payment of $1,200,000 when the interest rate is 10%. (Use the p sture value tables, use factor amounts rounded to five decimal places, X.XXXXX. Round your fir Financing Component Amount a. Payment of $2,200,000 occurs b. Payment of $2,200,000 occurs n e. Delivery is twelve years after par d. Delivery is twelve a before c
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Requirement
Determine the amount and type of financing component in the following contracts.
(Click the icon to view the independent contracts)
a. Payment of $2,200,000 occurs nine years after delivery when the interest rate is 5%. (Use the present value and future value tables, a financial calculator, or a spreadsheet for your calculations. If using present
and future value tables, use factor amounts rounded to five decimal places, XXXXXXX Round your final answer to the nearest whole dollar)
Amount
1,418,140
b. Payment of $2,200,000 occurs nine years before delivery when the interest rate is 5%. (Use the present value and future value tables, a financial calculator, or a spreadsheet for your calculations. If using presen
and future value tables, use factor amounts rounded to five decimal places, XXXXXXX Round your final answer to the nearest whole dollar)
Financing Component
Amount
Independent contracts
Financing Component
Interest Revenue
Interest Expense
c. Delivery is twelve years after payment of $1,200,000 when the interest rate is 10%. (Use the p
future value tables, use factor amounts rounded to five decimal places, X.XXXXX. Round your fir
Financing Component
Amount
d. Delivery is twelve years before payment of $1,200,000 when the interest rate is 10%. (Use the
and future value tables, use factor amounts rounded to five decimal places, XXXXXX Round yo
Financing Component
Amount
a. Payment of $2,200,000 occurs nine years after delivery when the interest rate is 5%.
b. Payment of $2,200,000 occurs nine years before delivery when the interest rate is 5%.
c. Delivery is twelve years after payment of $1,200,000 when the interest rate is 10%.
d. Delivery is twelve years before payment of $1,200,000 when the interest rate is 10%.
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