(a) Derek Lee Inc. has $572000 to invest. The company is trying to decide betwe

(a)
Derek Lee Inc. has $572000 to invest. The company is trying to
decide between two alternative uses of the funds. One alternative
provides $80000 at the end of each year for 12 years and the other
is to receive a single lump sum payment of $1900000 at the end of
the 12 years. Which alternative should Lee select? Assume the interest
rate is constant over the entire investment.(b) Derek Lee Inc.
has completed the purchase of new Dell computers. The fair market
value of the equipment is $824150. The purchase agreement specifies
an immediate down payment of $200000 and semiannual payments of
$76952 beginning at the end of 6 months for 5 years. What is the
interest rate to the nearest percent used in discounting this
purchase transaction?(c) Derek Lee Inc. loans money to John Kruk
Corporation in the amount of $600000. Lee accepts an 8% note due in 7
years with interest payable semiannually. After 2 years (and receipt
of interest for 2 years) Lee needs money and therefore sells the note
to Chicago National Bank which demands interest on the note of 10%
compounded semiannually. What is the amount Lee will receive on the
sale of the note?(d) Derek Lee Inc. wishes to accumulate
$1300000 by December 31 2017 to retire bonds outstanding. The
company deposits $300000 on December 31 2007 which will earn
interest at 10% compounded quarterly to help in the retirement of
this debt. In addition the company wants to know how much should be
deposited at the end of each quarter for 10 years to ensure that
$1300000 is available at the end of 2017. (The quarterly deposits
will also earn at a rate of 10% compounded quarterly.) (Round to even
dollars.)