Caps Co. produces and sells bottle capping equipment for soft drink and spring water bottlers. To finance

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Caps Co. produces and sells bottle capping equipment for soft drink and spring water bottlers. To finance its operations, Caps Co. issued $20,000,000 of five-year, 9% bonds with interest payable semiannually at an effective interest rate of 10%. Determine the present value of the bonds payable, using the present value tables in Exhibits 3 and 4. Round to the nearest dollar.

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Accounting

ISBN: 978-0324401844

22nd Edition

Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac

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