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Assume that Sonic Foundry Corporation has a contractual debt outstanding. Sonic has available two means of settlement. It can either make immediate payment of $
Assume that Sonic Foundry Corporation has a contractual debt outstanding. Sonic has available two means of settlement. It can either make immediate payment of $ 1,979,000, or it can make annual payments of $ 270,300 for 15 years, each payment due on the last day of the year. Which method of payment do you recommend, assuming an expected effective interest rate of 11% during the future period?
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