How much must be deposited on January 1, 2014 in a savings account paying 6% annually in order to make annual withdrawals of $30,000 at the end of the years 2014 and 2015? The present value of one at 6% for one period is .9434. (Points : 2)

$26,700 $55,002 $56,610 $60,000

Question 21.21. What amount should be recorded as the cost of a machine purchased December 31, 2014, which is to be financed by making 8 annual payments of $9,000 each beginning December 31, 2015? The applicable interest rate is 8%. (Points : 2)

$51,719 $56,222 $63,000 $95,730

Question 22.22. Find the present value of an investment in plant and equipment if it is expected to provide annual earnings of $39,000 for 15 years and to have a resale value of $75,000 at the end of that period. Assume a 10% rate and earnings at year end. The present value of 1 at 10% for 15 periods is .23939. The present value of an ordinary annuity at 10% for 15 periods is 7.60608. The future value of 1 at 10% for 15 periods is 4.17725. (Points : 2)

$296,637 $314,592 $371,637 $602,955

Question 23.23. The market price of an $800,000, ten-year, 12% (pays interest semiannually) bond issue sold to yield an effective rate of 10% is (Points : 2)

$898,312. $899,698. $906,616. $1,497,888.

Question 24.24. James leases a ski chalet to his best friend, Janet. The lease term is five years with $20,000 annual payments due at the beginning of each year. What is the present value of the payments discounted at 8% per annum? (Points : 2)

$72,488. $76,346. $79,855. $86,243.

Question 25.25. On January 1, 2014, Haley Co. issued ten-year bonds with a face amount of $4,000,000 and a stated interest rate of 8% payable annually on January 1. The bonds were priced to yield 10%. Present value factors are as follows: At 8%At 10% Present value of 1 for 10 periods0.4630.386 Present value of an ordinary annuity of 1 for 10 periods6.7106.145 The total issue price of the bonds was (Points : 2)

$3,510,400. $3,680,000. $3,920,000. $4,000,000.