Question
1. Elmdale Company is considering an investment that will return a lump sum of $725,500, 6 years from now. Click here to view the factor
1. Elmdale Company is considering an investment that will return a lump sum of $725,500, 6 years from now. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What amount should Elmdale Company pay for this investment to earn a 12% return? (Round answer to 2 decimal places, e.g. 25.25.) Elmdale Company should pay
2. Robertson Company receives a $75,700, 8-year note bearing interest of 10% (paid annually) from a customer at a time when the discount rate is 10%. Click here to view the factor table. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) What is the present value of the note received by Robertson? (Round answer to 2 decimal places, e.g. 25.25.)
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