Part 5: Liabilities and the time value of money questions. 13 points) 12 Atwood Corp, is planning to extend its business and therefore needs more office space on January 11 2020. the manager is facing the decision to purchase a new space or rent a place. There are three options A Rent a space and make rental payments of $4.100 in cash every month for 2 years). The annual interest rates Rent a space and pay $50,000 upfront today for this year and pay $49.000 2 years from now. The annual interest rates Purchase a space by borrowing $740,000 on a 12%. 1 year interest-paying note dated January 15 2020) The interest and principal will be paid on maturity (December 31, 2020). 00-501 Atwood Corp's fiscal year-end is December 31. 1. What is the present value of the option (AY 14 points 2. What is the present value of the option (8)? (4 points) I 3. Atwood Corp. decided to choose option (C). Prepare the Journal entry Atwood Corp, has to record on December 31, 2020. (5 points) Part 5: Liabilities and the time value of money questions. 13 points) 12 Atwood Corp, is planning to extend its business and therefore needs more office space on January 11 2020. the manager is facing the decision to purchase a new space or rent a place. There are three options A Rent a space and make rental payments of $4.100 in cash every month for 2 years). The annual interest rates Rent a space and pay $50,000 upfront today for this year and pay $49.000 2 years from now. The annual interest rates Purchase a space by borrowing $740,000 on a 12%. 1 year interest-paying note dated January 15 2020) The interest and principal will be paid on maturity (December 31, 2020). 00-501 Atwood Corp's fiscal year-end is December 31. 1. What is the present value of the option (AY 14 points 2. What is the present value of the option (8)? (4 points) I 3. Atwood Corp. decided to choose option (C). Prepare the Journal entry Atwood Corp, has to record on December 31, 2020. (5 points)