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Corporate Fin Focused Approach

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section4.17: Amortized Loans

Problem 1ST

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I am searching for the correct answer to this general accounting problem with proper accounting rules.

Calculate the present value of the note receivable using a 12% interest
rate for 6 years. Using the present value of the note as the only
economic benefit received, recalculate the gain or loss on the
transaction.
(Note Receivables: $10,000,000, Asset: $7,500,000, Gain: $2,500,000)

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