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0. On January 1,2025 , Haley Co. issued ten-year bonds with a face amount of $5,000,000 and a stated interest rate of 8% payable annually
0. On January 1,2025 , Haley Co. issued ten-year bonds with a face amount of $5,000,000 and a stated interest rate of 8% payable annually on January 1 . The bonds were priced to yield 10%. Present value factors are as follows: Cash received from the sale of the bonds was a. $5,000,000. b. $4,900,000. c. $4,600,000. d. $4,388,000. 1. On July 1, 2025, Ed Wynne signed an agreement to operate as a franchisee of Kwik Foods, Inc., for an initial franchise fee of $900,000. Of this amount, $300,000 was paid when the agreement was signed and the balance is payable in four equal annual payments of $150,000 beginning July 1,2026 . The agreement provides that the down payment is not refundable and no future services are required of the franchisor. Wynne's credit rating indicates that he can borrow money at 14% for a loan of this type. Information on present and future value factors are as follows
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