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ohnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV of $1. PV of $1. FVA of $1., PVA
ohnstone Company is facing several decisions regarding investing and financing activities. Address each decision independently. (FV of $1. PV of $1. FVA of $1., PVA of $1 appropriate factor(s) from the tables provided.) , EVAD of $1 and PVAD of $1) (Use 1. On June 30, 2016, the Johnstone Company purchased equip ment from Genovese Corp. Johnstone agreed to pay Genovese $26,000 on the purchase date and the balance in five annual installments of $9000 on each June 30beginning June 30, 2017 Assuming that an interest rate of 11% properly reflects the time value of money in this situation, at what amount should Johnstone value the equipment? Table values are based on: n= Present Value Cash Flow Installments Down Payment Amount Value of the equipment
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