1. Sheridan Company is about to issue $262,000 of 10-year bonds paying an 11% interest rate, with interest payable annually. The discount rate for such securities is 12%. Click here to view the factor table 1. Table 2 Table 3 Table 4 How much can Sheridan expect to receive from the sale of these bonds?

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2. Steven Garcia owns a garage and is contemplating purchasing a tire retreading machine for $20,820. After estimating costs and revenues, Steven projects a net cash inflow from the retreading machine of $4,200 annually for 7 years. Steven hopes to earn a return of 8% on such investments. What is the present value of the retreading operation?