2. Price Mart is considering outsourcing its billing operations. A consultant estimates that outso result in cash savings of years. Interest s at l 1%. Assume cash flows occurat the end of the year (FV of $1, PVoi. of S1, FVAD of SI and PVAD of S1) (Use appropriate factor(s) from the tables provided.) $9400 the first year, $15,400 for the next two years, urcing s and $18,400 for the next two FVA of $1, PVA Required: Calculate the total present value of the cash flows. (Do not round intermediate caleulations, Round your final answer to nearest whole dollar.) 3. The note about debt included in the financial statements of Healdsburg Company for the year ended December 31, 2017 disclosed the following: 7.75% notes due 2018 8.25% notes due 2023 8.50% notes due 2032 8.1 3% notes due 2040 7.05% notes due 2019 S 210,400,000 S 354,200,000 S 235,000,000 S 210,000,000 S 26,000,000 The above table summarizes the long-te rm debt of the Company at December 31, 2017. All of the notes were originally issued at their face (maturity) value and have been gradually repaid over time so that these amounts are the remaining baÅ‚ances at this date. Assuming that the notes pay interest annually and mature on December 31 of the respective years. (FV of S1, PV of $1, FVA of $1, PVA of SI, FVAD of $1 and PVAD of S1) (Use appropriate factor(s) from the tables provided.) Required: Suppose that Healdsburg renegotiates the 8.50% notes on December 31, 2023, when the going interest rate is 6%. Healdsburg agrees to make l 2 equal annual installments, commencing on December 31, 2024, rather than pay the annual interest pa payments be? (Enter your answer in whole dollars. Round your final answer to nearest whole dolar.) t would the $235 million in a single amount at m yments and the
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