Cute Astempt in Progress On December 31, 2020, Green Bank enters into a debt restructuring agreement with Tamarisk Inc., which is now experiencing financial trouble. The bank agrees to restructure a $1.9-million, 12% note receivable issued at par by the following modifications: 1. Reducing the principal obligation from $1.9 million to $1.52 million 2. Extending the maturity date from December 31, 2020, to December 31, 2023 3. Reducing the interest rate from 12% to 10% Tamarisk pays interest at the end of each year. On January 1, 2024, Tamarisk Inc. pays $1.52 million in cash to Green Bank for the principal. The market rate is currently 10%. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. (a) Using (1) factor tables, (2) a financial calculator, or (3) Excel function PV, determine if Tamarisk can record a gain under this term modification. Calculate the gain if any. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and Round final answer to O decimal places, e.g. 1,525.) Gain (") periods 2% 24% 3% 5% 6% 7% 8% 9% 10% 11%6 12% 15% 1 0.98039 0.97561 0.97087 0.96156 0.95238 0.94340 0.93458 0.92593 0.91743 0.90909 0.90090 0.89286 0.86957 2 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 0.96117 0.95181 0.94260 0.92456 0.90703 0.89000 0.87344 0.85734 0.84168 0.82645 0.81162 0.79719 0.75614 3 0.94232 0.92860 0.91514 0.88900 0.86384 0.83962 0.81630 0.79383 0.77218 0.75132 0.73119 0.71178 0.65752 0.92385 0.90595 0.88849 0.85480 0.82270 0.79209 0.76290 0.73503 0.70843 0.68301 0.65873 0.63552 0.57175 0.90583 0.88385 0.86261 0.82193 0.78353 0.74726 0.71299 0.68058 0.64993 0.62092 0.59345 0.56743 0.49718 0.88797 0.86230 0.83748 0.79031 0.74622 0.70496 0.66634 0.63017 0.59627 0.56447 0.53464 0.50663 0.43233 0.87056 0.84127 0.81309 0.75992 0.71068 0.66506 0.62275 0.58349 0.54703 0.51316 0.48166 0.45235 037594 0.85349 0.82075 0.78941 0.73069 0.67684 0.62741 0.58201 0.54027 0.50187 0.46651 0.43393 0.40388 0.32690 0.83676 0.80073 0.76642 0.70259 0.64461 0.59190 0.54393 0.50025 0.46043 0.42410 0.39092 036061 0.28426 0.82035 0.78120 0.74409 0.67556 0.61391 0.55839 0.50835 0.46319 0.42241 0.38554 0.35218 0.32197 0.24719 0.80426 0.76214 0.72242 0.64958 0.58468 0.52679 0.47509 0.42888 0.38753 0.35049 0.31728 0.28748 0.21494 0.78849 0.74356 0.70138 0.62460 0.55684 0.49697 0.44401 0.39711 0.35554 0.31863 0.28584 0.25668 0.18691 0.77303 0.72542 0.68095 0.60057 0.53032 0.46884 0.41496 0.36770 0.32618 0.28966 0.25751 0.22917 0.16253 0.75788 0.70773 0.66112 0.57748 0.50507 0.44230 0.38782 0.34046 0.29925 0.26333 0.23199 0.20462 0.14133 0.74301 0.69047 0.64186 0.55526 0.48102 0.41727 0.36245 0.31524 0.27454 0.23939 0.20900 0.18270 0.12289 0.72845 0.67362 0.62317 0.53391 0.45811 0.39365 0.33873 0.29189 0.25187 0.21763 0.18829 0.16312 0.10687 0.71416 0.65720 0.66502 0.51337 0.43630 0.37136 0.31657 0.27027 0.23107 0.19785 0.16963 0.14564 0.09293 0.70016 0.64117 0.58739 0.49363 0.41552 0.35034 0.29586 0.25025 0.21199 0.17986 0.15282 0.13004 0.0808: 0.68643 0.62553 0.57029 0.47464 0.39573 0.33051 0.27651 0.23171 0.19449 0.16351 0.13768 0.11611 0.07027 0.67297 0.61027 0.55368 0.45639 0.37689 0.31180 0.25842 0.21455 0.17843 0.14864 0.12403 0.10367 0.06110 calculated using financial calculators. A financial calculator will perform the same calculation as a basic calculator, but it requires fewer steps and less diccount rate, and the number of periods, and then tell it to calculate the present value. Illustration 3.10 shows the requires (n) Periods 2% 24% 3% 2 3 45678 8 9 5% 6% 8% 9% 10% 11% 12%6 158 0.98039 0.97561 0.97087 0.96154 0.95238 0.94340 0.93458 0.92593 0.91743 0.90909 0.90090 0.89286 0.86957 1.94156 1.92742 1.91347 1.88609 1.85941 1.83339 1.80802 1.78326 1.75911 173554 171252 1.69005 1.62571 2.88388 2.85602 2.82861 2.77509 2.72325 2.67301 2.62432 2.57710 2.53130 2.48685 244371 240183 2.28323 3.80773 3.76197 3-71710 3.62990 3.54595 3-46511 338721 3.31213 3.23972 3.16986 3.10245 3.03735 2.85498 3-35216 4.71346 4.64583 4-57971 4-45182 4-32948 4.21236 4.10020 3.99271 3.88965 3-79079 3.69590 3.60478 378448 5.60143 5.50813 5-41719 5.24214 5.07569 4.91732 4.76654 4.62288 4-48592 435526 423054 411141 6.47199 6.34939 6.23028 6.00205 5-78637 5-58238 5.38929 5.20637 5.03295 4.86842 4-71220 456376 416042 732548 7.17014 7.01969 6.73274 6.46321 6.20979 5.97130 5-74664 5-53482 5-33493 5.14612 4.96764 448732 8.16224 7.97087 7.78611 7-43533 7.10782 6.80169 6.51523 6.24689 5.99525 5.75902 5-53705 532825 477158 8.98259 8.75206 8.53020 8.11090 7.72173 7.36009 7.02358 6.71008 6.41766 6.14457 5.88923 5.65022 5.01877 9.78685 951421 9.25262 8.76048 8.30641 7.88687 7-49867 7.13896 6.80519 6.49506 6.20652 5.93770 5-23371 10.57534 10.25776 9.95400 9.38507 8.86325 8.38384 7.94269 7.53608 7.16073 6.81369 6.49236 6.19437 5-42062 11.34837 10.98319 10.63496 9.98565 9.39357 8.85268 8.35765 7.90378 7.48690 7.10336 6.74987 6.42355 558315 12.10625 11.69091 11.29607 10.56312 9.89864 9.29498 8.74547 8.24424 7.78615 736669 6.98187 6.62817 572448 12.84926 12.38138 11.93794 11.839 10.37966 9.71225 9.10791 8.55948 8.06069 7.60608 7.19087 6.81086 5.84737 13-57771 13.05500 12.56110 11.65230 10.83777 10.10590 9.44665 8.85137 8.31256 7.82371 737916 6.97399 5-95424 10 11 12 13 14 15 16 17 18 19 20 14-29187 13-71220 13-16612 12.16567 11.27407 10.47726 9.76322 9.12164 8.54363 8.02155 7.54879 7.11963 14.99203 14-35336 13-75351 12.65930 11.68959 10.82760 10.05909 9-37189 8.75563 8.20141 770162 724967 15.67846 14-97889 14.32380 13.13394 12.08532 11.15812 10.33560 9.60360 8.95012 8.36492 7.83929 736578 16-35143 15.58916 14.87747 13-59033 12.46221 11.46992 10.59401 9.81815 9.12856 851356 7.96333 7-46944 6.25933 6.04716 6.10823 Table for an Annuity 6.12797