Using financial tables solve the following questions.

Question 1

Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine Corporation. Several financing alternatives have been offered by Danning: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

1. Pay $1,050,000 in cash immediately.

2. Pay $440,000 immediately and the remainder in 12 annual installments of $80,000, with the first installment due in one year.

3. Make 12 annual installments of $131,000 with the first payment due immediately.

4. Make one lump-sum payment of $1,780,000 six years from date of purchase.

Determine the present value, assuming that Harding can borrow funds at an 9% interest rate.

	PV
Option 1
Option 2
Option 3
Option 4

Pls put your answers in the table provided and determine the best alternative or option for Harding

Question 2

John Wiggins is contemplating the purchase of a small restaurant. The purchase price listed by the seller is $900,000. John has used past financial information to estimate that the net cash flows (cash inflows less cash outflows) generated by the restaurant would be as follows: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.):

Years Amount

1-6 $90,000

7 80,000

8 70,000

9 60,000

10 50,000

If purchased, the restaurant would be held for 10 years and then sold for an estimated $800,000.

Required: Determine the present value, assuming that John desires a 9% rate of return on this investment. (Assume that all cash flows occur at the end of the year.)

Future amount	i=	n=	Present value
$90,000	9%
80,000	9%
70,000	9%
60,000	9%
50,000	9%
800,000	9%

Pls provide the answers in the tables

Should the restaurant be purchased?

No

Yes

Question 3

The following situations should be considered independently. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

John Jamison wants to accumulate $65,754 for a down payment on a small business. He will invest $33,000 today in a bank account paying 9% interest compounded annually. Approximately how long will it take John to reach his goal?

Present value
n=
i=
Future value

Pls provide answers in the tables.

The Jasmine Tea Company purchased merchandise from a supplier for $35,887. Payment was a noninterest-bearing note requiring Jasmine to make six annual payments of $8,000 beginning one year from the date of purchase. What is the interest rate implicit in this agreement?

Present value
n=
i=
Annuity payment

Pls provide answers with the exact tables.

3. Sam Robinson borrowed $17,000 from a friend and promised to pay the loan in 10 equal annual installments beginning one year from the date of the loan. Sams friend would like to be reimbursed for the time value of money at a 10% annual rate. What is the annual payment Sam must make to pay back his friend?

Table or calculator function:
Present value
n=
i=
Annual installment

Pls provide answers in the above tables