Using the information from the present value analysis

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Wisconsin Warning Co. issued $5,000,000 of five-year, 8 % bonds with interest payable semi-annually at an effective interest rate of 11 %. Use the tables in Appendix A to determine the present value of the bonds payable. Round to the nearest dollar.

Alabama Alarm Co. issued $4,000,000 of 7 year, 12% bonds with interest payable semiannually at an effective interest rate of 10%. Use the tables in Appendix A to determine the present value of the bonds payable. Round to the nearest dollar.

Using the information from the present value analysis that you did in problems 27 and 28, which of the two investments do you recommend that our company, Sixpack Inc. invest in?   Why should we invest in your choice?

Reference no: EM13788054

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