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Chapter 11, E5B Face value of 30-year, 8% zero coupon bonds, compounded annually: Present value of a single payment at the end of 30 periods at 8% (from Table 1*): Face value x Face value = Face value = Face value of 50-year, 8% zero coupon bonds, compounded annually: Present value of a single payment at the end of 50 periods at 8% (from Table 1"): Face value x Face value = Face value = Face value of 30-year, 6% zero coupon bonds, compounded annually: Present value of a single payment at the end of 30 periods at 6% (from Table 1*): Face value x Face value = Face value = $143,578,279 Face value of 50-year, 6% zero coupon bonds, compounded annually: Present value of a single payment at the end of 50 periods at 6% (from Table 1*): ero Face value x Face value = Face value = $460,503,857 *From the appendix on present value tables.

Chapter 11, E5B Face value of 30-year, 8% zero coupon bonds, compounded annually: Present value of a single payment at the end of 30 periods at 8% (from Table 1*): Face value x Face value = Face value = Face value of 50-year, 8% zero coupon bonds, compounded annually: Present value of a single payment at the end of 50 periods at 8% (from Table 1"): Face value x Face value = Face value = Face value of 30-year, 6% zero coupon bonds, compounded annually: Present value of a single payment at the end of 30 periods at 6% (from Table 1*): Face value x Face value = Face value = $143,578,279 Face value of 50-year, 6% zero coupon bonds, compounded annually: Present value of a single payment at the end of 50 periods at 6% (from Table 1*): ero Face value x Face value = Face value = $460,503,857 *From the appendix on present value tables.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Terms of Sale
E5B. A household appliance dealer buys refrigerators from a manufacturer and resells
them to its customers.
a. The manufacturer sets a list or catalogue price of $2,500 for a refrigerator. The manufacturer offers its dealers a 30 percent trade discount.
b. The manufacturer sells the machine under terms of FOB destination. The cost of
shipping is $240.
c. The manufacturer offers a sales discount of 2/10, n/30. Sales discounts do not apply
to shipping costs.
What is the net cost of the refrigerator to the dealer, assuming it is paid for within 10
days of purchase?

Chapter 11, E5B Face value of 30-year, 8% zero coupon bonds, compounded annually: Present value of a single payment at the end of 30 periods at 8% (from Table 1*): Face value x Face value = Face value = Face value of 50-year, 8% zero coupon bonds, compounded annually: Present value of a single payment at the end of 50 periods at 8% (from Table 1"): Face value x Face value = Face value = Face value of 30-year, 6% zero coupon bonds, compounded annually: Present value of a single payment at the end of 30 periods at 6% (from Table 1*): Face value x Face value = Face value = $143,578,279
Transcribed Image Text:Chapter 11, E5B Face value of 30-year, 8% zero coupon bonds, compounded annually: Present value of a single payment at the end of 30 periods at 8% (from Table 1*): Face value x Face value = Face value = Face value of 50-year, 8% zero coupon bonds, compounded annually: Present value of a single payment at the end of 50 periods at 8% (from Table 1"): Face value x Face value = Face value = Face value of 30-year, 6% zero coupon bonds, compounded annually: Present value of a single payment at the end of 30 periods at 6% (from Table 1*): Face value x Face value = Face value = $143,578,279
Face value of 50-year, 6% zero coupon bonds, compounded annually: Present value of a single payment at the end of 50 periods at 6% (from Table 1*): ero Face value x Face value = Face value = $460,503,857 *From the appendix on present value tables.
Transcribed Image Text:Face value of 50-year, 6% zero coupon bonds, compounded annually: Present value of a single payment at the end of 50 periods at 6% (from Table 1*): ero Face value x Face value = Face value = $460,503,857 *From the appendix on present value tables.
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