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Business, 23.10.2019 20:00 kaylanweston
Option 1: construct the new equipment in-house and sell the old equipment for cash at a fair value of $60,000. b & e would take out a one-year construction loan for $500,000 at the time construction begins at a short-term borrowing rate of 10% for the construction anticipated actual expenditures for constructing the equipment are $580,000. the bulk of the $580,000 will be financed with the construction loan, and the balance will be financed through accounts payable. the interest on the short-term note is due and payable by year-end. (note: construction is assumed to be completed at december 31,2019.)
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Option 1: construct the new equipment in-house and sell the old equipment for cash at a fair value...
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