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- Make-It-Big Corporation is planning to build a new factory costing $2,000,000. On January 1, 2019, Make-Il-Big plans to issue bonds in the amount of
- Make-It-Big Corporation is planning to build a new factory costing $2,000,000. On January 1, 2019, Make-Il-Big plans to issue bonds in the amount of $1,800,000 that will be paid in five years. Interest of $45,000 will be paid semiannually each January 1 and July 1 with the first interest payment at the end of the period on July 1. 2019 (Click the icon to view the Future Value of $1 table) (Click the icon to view the Future Value of an Ordinary Annuity table.) (Click the icon to view the Future Value of an Annuity Due table.) (Click the icon to view the Presen (Click the icon to view the Preses Ordinary Annuity table) (Click the icon to view the Preses Annuity Due table ) Read the requirements e Requirement a. If the market rate of interest is 6%, will Make-It-Big raise enough to build the factory? Begin by calculating the bond issue proceeds (Use the present value and future value tables, a financial calculator, or a spreadsheet for your calculations. If using present and future value tables or the formulam amounts rounded to five decimal places, XXXXXX Round intermediary currency computations and your final answer to the nearest cent, SXXX.) The bond issue proceeds are 5 * Requirements - X a. If the market rate of interest is 6% will Make - It-Big raise enough to build the factory? b. If the market rate of interest is 2%, will Make-it-Big raise enough to build the factory? Enter any number in the edit fields and then click Check Ang Print Done
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