FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Cater company can lease and excavator for $24,000 per year (paid at the year end) for 12 years instead of buying the machine. The machine

Cater company can lease and excavator for $24,000 per year (paid at the year end) for 12 years instead of buying the machine. The machine will be valueless after 12 years. If the interest rate your company can earn on its funds is 4%, what is the price you are paying of the future payment? (please advise in detail with formulation. Thank you)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial statements

Financial statements

Authors: Stephen Barrad

5th Edition

978-007802531, 9780324186383, 032418638X

More Books

Students also viewed these Finance questions

Question

The farm can lease a tractor for $ 13,000 per year (paid at the year-end) for 7 years instead of buying the tractor. The tractor will be valueless after 7 years. If the interest rate your company can...

Answered: 1 week ago

Question

★★★★★
Your landscaping company can lease a truck for $8,000 a year (paid at year end) for 6 years. It can instead buy the truck for $40,000. The truck will be valueless after 6 years. The interest rate...

Answered: 1 week ago

Question

★★★★★
1 What are the main components of personal financial planning? Solve What is the purpose of a financial plan? Solve Identify some common actions taken to achieve financial goals. How does a job...

Answered: 1 week ago

Question

★★★★★
For data Tables in an Oracle Server database, a blank field must be a. Indicated by NULL Avoided b. Kept as a blank c. Indicated either by NULL or a blank d. Indicated by NULL

Answered: 1 week ago

Question

★★★★★
Felixs Gardening Supply had the following transactions involving cash during early August: August1 Purchased four lawnmowers for $300 each. August2 Purchased $320 of office supplies for cash. August4...

Answered: 1 week ago

Question

★★★★★
What can you conclude about the convergence or divergence of a n ? lim n+ an || 3

Answered: 1 week ago

Question

★★★★★
understand the principles of participatory action research (PAR) and why it is used for work-stress interventions;

Answered: 1 week ago

Question

★★★★★
Its Just Lunch is a nationwide service company that arranges lunch dates for clients. Its Just Lunch collects cash up front for a package of dates. Suppose your group is opening an Its Just Lunch...

Answered: 1 week ago

Question

★★★★★
#include #define SIZE 10 using namespace std; class Stack { int stack[SIZE],top; public: Stack() //Constructor for initializing top { top=-1; } void push(int num) { if(top==SIZE-1) //Stack is full {...

Answered: 1 week ago

Question

★★★★★
A researcher is interested to know if there is a difference in levels of religiosity between different income groups. The researcher administers a religiosity scale to a total of 15 people: 5 "low...

Answered: 1 week ago

Question

★★★★★
Comparison of APPLE and MICROSOFT corporate governance. To what extent the corporate governances are similar and to what extent they are different, how they reflect good governance principles such as...

Answered: 1 week ago

Question

★★★★★
Victor and George are friends who have recently graduated from Greenstreet University with a degree in fashion design. They discuss an idea of setting up a fashion design business in London. Having...

Answered: 1 week ago

Question

★★★★★
research at least 2 of the following codes of ethics: (ISC)2 Code of Ethics The International Council of Electronic Commerce Consultant (EC-Council) System Administration, Networking, and Security...

Answered: 1 week ago

Question

★★★★★
Problem 1 (20 points). In a warehouse, it is required to locate a temporary storage area for 5 shelves operations that are located in the following coordinates (1, 4), (1, 8), (1, 12), (4, 4) and (4,...

Answered: 1 week ago

Question

★★★★★
Game Z Ltd has 3 sources of capitals - Common shares, Preferred shares and corporate bonds. The market value of its common shares is $50 per share while its Preferred shares are valued at $45 per...

Answered: 1 week ago

Question

★★★★★
If revenues are $264,000, expenses are $216,000 and dividends are $29.000, before it is closed, the Income Summary will have a 5 Multiple Choice 4005 O Credit balance of $48.000 O Debit bintance of...

Answered: 1 week ago

Question

★★★★★
Find the velocity, acceleration, and speed of a particle with the given position function. r(t) = (t 2 , sin t - t cos t, cos t + t sin t), t > 0

Answered: 1 week ago

Question

★★★★★
11.14 Smoking and alcohol Refer to the previous exercise. A similar table relates cigarette use to alcohol use. The MINITAB output for the chi-squared test follows. a. True or false: If we use...

Answered: 1 week ago

Question

★★★★★
11.15 Help the environment In 2010 the GSS asked whether a subject was willing to accept cuts in the standard of living to help the environment (GRNSOL), with categories (vw = very willing, fw =...

Answered: 1 week ago

Question

★★★★★
11.13 Cigarettes and marijuana The table on the following page refers to a survey2 in which senior high school students in Dayton, Ohio, were randomly sampled. It cross-tabulates whether a student...

Answered: 1 week ago

Previous Question Next Question