BUSINESS COLLEGE

An company buys a color printer that will cost $18,000 to buy, and last 5 years. It is assumed that it will require servicing costing $500 each year. What is the equivalent annual annuity of this deal, given a cost of capital of 12%? A. -$3983 B. -$4002 C. -$4957 D. -$5493

Answers

Answer 1
Answer:

Answer:

The correct answer is option (D)

Explanation:

Solution

Given that:

The present value of equity factor for 5 years at 12% discount are = 3.60478

Then,

The present value of servicing costing = -$500 * 3.60478 = -$1802.39

Thus,

The present value of cost to buy =- $18000

The total Present value = -18000 + 1802.39 = -$19802.39

So,

The equivalent annual annuity = total Present value / present value of equity factor

= -$19802.39 / 3.60478

= -$5493.37

Therefore, the equivalent annual annuity of this deal is -$5493.37

Related Questions

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Boilermaker House Painting Company1. Sep 3 Paint houses in the current month for $20,000 on account.2. Sep 8 Purchase painting equipment for $21,000 cash.3. Sep 12 Purchase office supplies on account for $3,500.4. Sep 15 Pay employee salaries of $4,200 for the current month.5. Sept 19 Purchase advertising to appear in the current month for $1,000 cash.6. Sep 22 Pay office rent of $5,400 for the current month.7. Sep 26 Receive $15,000 from customers in (1) above.8. Sep 30 Receive cash of $6,000 in advance from a customer who plans to have his house painted in the following month.a) Record each transaction. The company uses the following accounts: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Deferred Revenue, Common Stock, Retained Earnings, Service Revenue, Salaries Expense, Advertising Expense, Rent Expense.
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Given this project and the requirement that the number of resources working on a task cannot be less than the number assigned to the task, answer the following question. What is the least amount of time that the project can be completed and how many resources are required to complete the work?a. 16 days, 7 workers b. 7 days, 5 workers c. 5 days, 7 workers d. 8 days, 3 workers
Assume a​ Cobb-Douglas production function of the​ form: q equals 10 Upper L Superscript 0.97 Baseline Upper K Superscript 0.18. What type of returns to scaleLOADING... does this production function​ exhibit? In this​ instance, returns to scale equal nothing. ​ (Enter a numeric response using a real number rounded to two decimal​ places.) This production function exhibits A. decreasing returns to scale. B. constant returns to scale. C. initially increasing but then constant returns to scale. D. initially constant but then increasing returns to scale. E. increasing returns to scale.

5. In the October 23, 1999 issue, the Economist reports that the interest rate per annum is 5.93% in the United States and 70.0% in Turkey. Why do you think the interest rate is so high in Turkey? Based on the reported interest rates, how would you predict the change of the exchange rate between the U.S. dollar and the Turkish lira?

Answers

Answer:

According to the international Fisher Effect (IFE) the high interest rate reflects a high expected rate of inflation in Turkey.

5.93% - 70% = -64.07%

This means that the Turkish Lira is expected to depreciate by 64.07% against the US dollar

TaskMaster Enterprises employs a standard cost system in which direct materials inventory is carried at standard cost. TaskMaster has established the following standards for the prime costs of one unit of product.Standard Quantity Standard Price Standard Cost

Direct Materials 10 pounds $ 1.90 per pound $ 19.00
Direct Labor 0.30 hour $ 6.80 per hour 2.04
$ 21.04

During November, TaskMaster purchased 200,000 pounds of direct materials at a total cost of $440,000. The total factory wages for November were $48,000, 80% of which were for direct labor. TaskMaster manufactured 19,000 units of product during November using 175,000 pounds of direct materials and 6,000 direct labor hours.

What is the direct labor price (rate) variance for November?

Answers

Answer:

$2,400 Favourable

Explanation:

direct labor price (rate) variance =(Aq×Ap)-(Aq×Sp)

                                                      =(6,000×$6.40) - (6,000×$ 6.80)

                                                      = $2,400 Favourable

Ap = (48,000×80%)/6,000

     = $6.40

Answer:

$2,400 Favourable

Explanation:

direct labor price (rate) variance =(Aq×Ap)-(Aq×Sp)

                                                     =(6,000×$6.40) - (6,000×$ 6.80)

                                                     = $2,400 Favourable

Ap = (48,000×80%)/6,000

    = $6.40

Explanation:

A company reports purchases of $ 418 comma 000​, a beginning accounts payable balance of $ 48 comma 000​, and an ending accounts payable balance of $ 40 comma 000. All purchases were on account. The​ company's accounts payable turnover would be closest​ to:____________​(Values are rounded to two decimal​ places, X.XX.)

Answers

Answer:

9.50 times

Explanation:

The computation of the accounts payable turnover ratio  is shown below:

= Total purchase ÷ average accounts payable

where,  

Average accounts payable = (Opening balance of Accounts payable + ending balance of Accounts payable) ÷ 2

= ($48,000 + $40,000) ÷ 2

= $44,000

And, the total purchase is $418,000

Now put these values to the above formula  

So, the answer would be equal to  

= $418,000 ÷ $44,000

= 9.50 times

Bank A has an increase in deposits of $20 million dollars and all bank reserve requirements are 10%. Bank A loans out the full amount of the deposit increase that is allowed. This amount winds up deposited in Bank B. Bank B finds out the full amount possible as well and this amount winds up deposited in Bank C. What is the total increase in deposits resulting from these three banks

Answers

Answer:

Total increase in deposit  = $54,200,000

Explanation:

given data

deposits = $20 million dollars

bank reserve = 10%

solution

we know that Deposit in bank A  is = $20,000,000

and  Reserve @ 10%   = $2,000,000

so

Bank A loans or bank B deposit  will be = $20,000,000  - $2,000,000

Bank A loans or bank B deposit  = $18,000,000

here  Reserve @ 10%  = $1,800,000

so

Bank B loans or Bank C deposit  will be here = $18,000,000  - $1,800,000

Bank B loans or Bank C deposit = $16,200,000

so that

Total increase in deposit will be = Bank A + Bank B + Bank C     ...............1

put here value we get

Total increase in deposit  = $20,000,000 + $18,000,000 + $16,200,000

Total increase in deposit  = $54,200,000

Jamison Company had sales revenue and operating expenses of $5,000,000 and $4,200,000, respectively, for the year just ended. If invested capital amounted to $6,000,000, the firm's ROI was:_________ A. 13.33%.
B. 83.33%.
C. 120.00%.
D. 750.00%.

Answers

Answer:

A,. 13.33%.

Explanation:

Return on Investment (ROI) which gives the efficiency of a particular investment

We were given invested capital amounted as $6,000,000, and operating expenses as $5,000,000

We can calculate net income by substracing equal sales revenue from operating expenses

net income can be calculated as = ($5000000-$420000)

= $800000

ROI can be calculated as

net income/Capital investment

$800000/$6000000

=. 13.33%.

Which is one of the greatest risks of being entrepreneur

Answers

One of the greatest risks of being entrepreneur is the risk of business failure

What is one of the greatest risks of being entrepreneur?

One of the greatest risks of being an entrepreneur is the possibility of business failure. Starting a new business is inherently risky, as there is no guarantee that the business will be successful.

Entrepreneurs may invest significant time, money, and resources into their businesses, but still be unable to generate sufficient revenue to cover their costs or turn a profit. Business failure can be financially and emotionally devastating for entrepreneurs, as well as damaging to their reputation and future career prospects.

Learn more about entrepreneur at brainly.com/question/353543

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