Acct 550 Week 4 Assisgnment
E6-5
(a) $30,000 X 4.96764 = $149,029.20.
(b) $30,000 X 8.31256 = $249,376.80.
(c) ($30,000 X 3.03735 X .50663 = $46,164.38.
E6-12
Building (A)—PV = $600,000.
Building (B)— Rent X (PV of annuity due of 25 periods at 12%) = PV $69,000 X 8.78432 = PV $606,118.08 = PV
Building (C)— Rent X (PV of ordinary annuity of 25 periods at 12%) = PV $7,000 X 7.84314 = PV $54,901.98 = PV
Cash purchase price $650,000.00 PV of rental income – 54,901.98 Net present value $595…
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