AP9-10 (Algo) Computing Present Values LO9-7, 9-8 On January 1, Ellsworth Company completed the following transactions (use an 8% annual interest rate for all transactions): (FV of $1. PV of \$1, EVA of \$1, and PVA of \$1) Note: Use appropriate factor(s) from the tables provided. a. Borrowed $2,350,000 to be repaid in five years. Agreed to pay a fixed amount of $157,000 at the end of each year for five years and a one-time payment of $2,350,000 at the end of the 5 th year. b. Established a plant remodeling fund of $1,700,000 to be available at the end of Year 10 . A single sum that will grow to $1,700,000 will be deposited on January 1 of this year. c. Purchased a $764,000 machine on January 1 of this year and paid cash, $407,000, A four-year note is signed for the balance. The note will be paid in four equal year-end payments starting on December 31 of this year. Required: 1. In transaction (a), determine the present value of the debt. 2-a. In transaction (b), what single amount must the company deposit on January 1 of this year? 2-b. In transaction (b), what is the total amount of interest revenue that will be earned? 3-a. In transaction (c), what is the amount of each of the equal annual payments that will be paid on the note? 3-b. In transaction (c) what is the total amount of interest expense that will be incurred