Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What is the present value of an investment in equipment that is expected to provide annual earnings of $ 6 5 5 0 0 for

What is the present value of an investment in equipment that is expected to provide annual earnings of $65500 for 15 years and to have a resale value of $125500 at the end of that period? Assume a 9% rate and earnings at year - end. The present value of 1 at 9% for 15 periods is 0.27454. The present value of an ordinary annuity at 9% for 15 periods is 8.06069. The future value of 1 at 9% for 15 periods is 3.64248.
A. $1077970
B . $527975
C. $664417
D. $562430
image text in transcribed

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

Cost Accounting

Authors: M.Y. Khan, P.K. Jain

2nd Edition

9339203445, 9789339203443

More Books

Students also viewed these Accounting questions