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No new equipment will be needed for the sales and administrative
departments.
2006 LONG-TERM DEBT INFORMATION
A long-term debt repayment (principle only) will be made on
December 31, 2006 for $255,000. The interest rate charged on the
debt balance throughout 2006 will be 7.5% and will be paid on
December 31, 2006.
If an additional machine is purchased, $5,000 will be paid in cash
and the remaining $25,000 will be financed at the 7.5% rate. This
same proportion of cash/additional debt will be applied to all
additional equipment purchased during 2006. Again, any purchases
will be made on January 1, 2006.
DIVIDEND POLICY
Fantastic, Inc.'s policy is to pay dividends on the last day of each
quarter. The total anticipated dividends for 2006 are $2.50 per
share.
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ACCT 556 Week 7 Homework Problem
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ACCT 556 Week 7 Problem Benefits of Social Programs
A community public works project will cost $55,000 dollars and will
benefit 5 different individuals:
1. Is this project economically feasible? Show work in an excel
spreadsheet that lists the benefit for each individual.