The hedge fund you work for is considering purchasing the rights to all of Shakira's songs. You estimate that the royalties from the music rights will be approximately $2 million each year for the...

Extracted text: The hedge fund you work for is considering purchasing the rights to all of Shakira's songs. You estimate that the royalties from the music rights will be approximately $2 million each year for the next twenty years. For ease of computation, assume that these royalty payments will be received at the end of each year. Assuming you can earn an 8% return on other similar-risk investments, what is the maximum amount that you should be willing to pay for the music rights? $ Salty Frozen Yogurt purchases a new refrigeration system for $100,000 on 1/1/21. Salty pays an initial deposit of $40,000 on 1/1/21. They will pay the remaining $60,000 by making equal- sized payments at the end of each year for three years - $20,000 on 12/31/21, $20,000 on 12/31/22 and $20,000 on 12/31/23. If Saltyis borrowing costs are 8%, they should debit the PP&E account for on 1/1/21.