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Crane Company is constructing a building. Construction began on January 1 and was completed on December 31 . Expenditures were $6390000 on March 1, $5350000
Crane Company is constructing a building. Construction began on January 1 and was completed on December 31 . Expenditures were $6390000 on March 1, $5350000 on June 1, and $8450000 on December 31. Crane Company borrowed $3250000 on January 1 on a 5-year, 11% note to help finance construction of the building. In addition, the company had outstanding all year a 9%, 3-year, $6360000 note payable and an 10%,4-year, $12350000 note payable. What is the weighted-average interest rate used for interest capitalization purposes? 10.00%9.66%9.51%9.86%
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