Contractual debt outstanding

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Assume the Sonic Foundry Corporation has a contractual debt outstanding. Sonic has available two means of settlement. It can either make immediate payment of 2,600,000 or it can make annual payments $300,000 for 15 years, each payment do on the last day of the year. Which method of payment do you recommend assuming an expecting effective interest rate of 8% during the future period?

Reference no: EM131264206

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