Chapter 5 Problems 5 2 points eBook Print Problem 5-9 (Algo) Noninterest-bearing note; annuity and lump-sum payment [LO5-3, 5-8] On January 1, 2021, The Barrett Company purchased merchandise from a supplier, Payment was a noninterest-bearing note requiring five annual payments of $29,000 on each December 31 beginning on December 31, 2021, and a lump-sum payment of $190,000 on December 31, 2025. A 9% interest rate properly reflects the time value of money in this situation. ((EV of $1. PV of $1. EVA of $1, PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Calculate the amount at which Barrett should record the note payable and corresponding merchandise purchased on January 1, 2021. (Round your final answer to nearest whole dollar amount.) Table values are based on: n- References Cash Flow Payments Lump Sum Amount recorded Amount Present Value 4 Exercise 5-10 (Algo) Future and present value [LO5-3, 5-7, 5-8] 5 points Skipped eBook Hint Print Answer each of the following independent questions. Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1) $96,000 cash immediately, (2) $39,000 cash immediately and a six-period annuity of $9,800 beginning one year from today, or (3) a six-period annuity of $18,800 beginning one year from today. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. Assuming an interest rate of 5%, determine the present value for the above options. Which option should Alex choose? 2. The Weimer Corporation wants to accumulate a sum of money to repay certain debts due on December 31, 2030. Weimer will make annual deposits of $195,000 into a special bank account at the end of each of 10 years beginning December 31, 2021. Assuming that the bank account pays 7% interest compounded annually, what will be the fund balance after the last payment is made on December 31, 2030? Complete this question by entering your answers in the tabs below. Required 1 Required 2 References Mc Graw Assuming an interest rate of 5%, determine the present value for the above options. Which option should Alex choose? (Round your final answers to nearest whole dollar amount.) Annuity Payment PV Annuity Option 1 Option 2 Option 3. Which option should Alex choose? Immediate Cash PV Option $ 0 $ $ 0 Required 1 Required 2 > Skipped Complete this question by entering your answers in the tabs below. eBook Required 1 Required 2 Hint Print eferences that Dalance after the last payment is made on December The Weimer Corporation wants to accumulate a sum of money to repay certain debts due on December 31, 2030, Weimer will make annual deposits of $195,000 into a special bank account at the end of each of 10 years beginning December 31, 2021. Assuming that the bank account pays 7% interest compounded annually, what will be the fund balance after the last payment is made on December 31, 2030? (Round your final answers to nearest whole dollar amount.) Show less A Table or calculator function: Payment Future value: 5= 5 5 points Skipped eBook Exercise 5-11 (Algo) Deferred annuities (LO5-8] Lincoln Company purchased merchandise from Grandville Corp. on September 30, 2021. Payment was made in the form of a noninterest-bearing note requiring Lincoln to make six annual payments of $4,000 on each September 30, beginning on September 30, 2024. (EV of $1. PV of $1. EVA of $1. PVA of $1. EVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answer to nearest whole dollar amount.) Required: Calculate the amount at which Lincoln should record the note payable and corresponding purchases on September 30, 2021, assuming that an interest rate of 9% properly reflects the time value of money in this situation. Amount recorded Hint Print