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Assume that Adams Corporation has a contractual debt outstanding. Adams has available two means of settlement: It can either make immediate payment of $1,445,000,
Assume that Adams Corporation has a contractual debt outstanding. Adams has available two means of settlement: It can either make immediate payment of $1,445,000, or it can make annual payments of $205,000 for 10 years, each payment due on the last day of the year. Click here to view factor tables Which method of payment do you recommend, assuming an expected effective interest rate of 12% during the future period? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to O decimal places, e.g. 458,581.) Present Value of annual payments Recommended payment method
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