Waterway Company recently signed a lease for the deposit to be returned at the expiration of the lease, with interest compounded at 5% per year. new office building, for a lease period of 10 years. Under the lease agreement, security deposit of $12,720 is made, with Click here to view factor tables What amount will the company receive at the time the lease expires? (Round factor values to 5 decimal places, e.g. 1.251 24 and final answer to 0 decimal places, e.g. 458,581.) The company will receive LINK TO TEXT IINK TO TEXT LINK TO TEXT VIDEO: SIMILAR EXERCISE Wildhorse Corporation, having recently issued a $20,089,900, 15-year bond issue, is committed to make annual sinking fund deposits of $621,600. The deposits are made on the last day of each vear and vield a return of 10%. Click here to view factor tables Will the fund at the end of 15 years be sufficient to retire the bonds? Future value of an ordinary annuity Will funds be sufficient? Wildhorse Corporation, having recently issued a $20,089,900, 15-year bond issue, is committed to make annual sinking fund deposits of $621,600. The deposits are made on the last day of each year and yield a return of 10 % Click here to view factor tables Determine the amount of deficiency. (Round factor values to 5 decimal places, e.g. 1.251 24 and final answer to 0 decimal places, e.g. 458,581.) Deficiency LINK TO TEXT LINK TO TEX LINK TO TEXT VIDEO: SIMILAR EXERCISE Under the terms of his salary agreement, president Newman Walters has an option of receiving either an immediate bonus of $60,500, or a deferred bonus of $77,000 payable in 10 years Click here to view factor tables Ignoring tax considerations and assuming a relevant interest rate of 4%, which form of settlement should Walters accept? Present value of deferred bonus Click if you would like to Show Work for this question Open Show Work T LINK TO TEXT LINK TO TXT LINK VIDEO: SIMILAR EXERCISE Exercise 6-7 What would you pay for a $125,000 debenture bond that matures in 15 years and pays $6,250 a year in interest if you wanted to earn a yield of view factor tables Click here to 2%? (Round factor values to 5 decimal places, e.g. 1.251 24 and final answer to 0 decimal places, e.g. 458,581.) Amount to Pay LINK TO TET 3%? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Amount to Pay LINK TO TXT 4%? (Round factor values to 5 decimal places, e.g. 1.251 24 and final answer to 0 decimal places, e.g. 458,581.) Amount to Pay s Open Show Work Click if you would like to Show Work for this question: Problem 6-3 Assume that Wal-Mart Stores, Inc. has decided to surface and maintain for 10 years a vacant lot next to one of its stores to serve as a parking lot for customers. Management is considering the following bids involving two different qualities of surfacing for a parking area of 12,400 square yards. estimated at 25 cents per square yard for each year except the last year of its service. The replacement surface will be similar to the enance cost on this surface is Bid B: A surface that costs $9.75 per square yard to install. This surface has a probable useful life of 10 years and will require annual maintenance in each year except the last year, at an estimated cost of 10 cents per square yard. Bid A: A surface that costs $5.25 per square yard to install. This surface will have to be replaced at the end of 5 years. The annual initial surface Click here to view factor tables Compute present value of the bids. You may assume that the cost of capital is 10%, that the annual maintenance expenditures are incurred at the end of each year, and that prices are not expected to change during the next 10 years. (Round factor values to 5 decimal places, e.g. 1.251 24 and final answer to 0 decimal places, e.g. 458,581.) Present value of outflows for Bid A Present value of outflows for Bid B Which bid should be accepted by Wal-Mart. Wal-Mart should accept Open Show Work Click if you would like to Show Work for this question: LINK TO T LINK TO TEXT
