Dick Button has offered to buy Stacy$$s vineyard business by assuming the $40-$year lease. On the basis of the current value of the business, what is the minimum price Stacy should accept?

P$6\mathrm{.}7($LO $2,3,4)($Time Value Concepts Applied to Solve Business Problems$)$ Answer the following questions related to Dubois Inc.

a$.$Dubois Inc. has $$600,000$ to invest. The company is trying to decide between two alternative uses of the funds. One alternative provides $$80,000$ at the end of each year for $12$ years, and the other is to receive a single lump$-$sum payment of $$1,900,000$ at the end of the $12$ years. Which alternative should Dubois select? Assume the interest rate is constant over the entire investment.

b$.$Dubois Inc. has completed the purchase of new Dell computers. The fair value of the equipment is $$824,150.$ The purchase agreement specifies an immediate down payment of $$200,000$ and semiannual payments of $$76,952$ beginning at the end of $6$ months for $5$ years. What is the interest rate, to the nearest percent, used in discounting this purchase transaction?

c$.$Dubois Inc. loans money to John Kruk Corporation in the amount of $$800,000.$ Dubois accepts an $8\%$ note due in $7$ years with interest payable semiannually. After $2$ years $($and receipt of interest for $2$ years$),$ Dubois needs money and therefore sells the note to Chicago National Bank, which demands interest on the note of $10\%$ compounded semiannually. What is the amount Dubois will receive on the sale of the note?

d$.$Dubois Inc. wishes to accumulate $$1,300,000$ by December $31,2030,$ to retire bonds outstanding. The company deposits $$200,000$ on December $31,2020,$ which will earn interest at $10\%$ compounded quarterly, to help in the retirement of this debt. In addition, the company wants to know how much should be deposited at the end of each quarter for $10$ years to ensure that $$1,300,000$ is available at the end of $2030.($The quarterly deposits will also earn at a rate of $10\%,$ compounded quarterly.$)($Round to even dollars.$)$