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You are considering the purchase of a piece of equipment in your company. The initial cost of the equipment is $6000 and it will last
You are considering the purchase of a piece of equipment in your company. The initial cost of the equipment is $6000 and it will last six years with a $0 salvage value. The piece of equipment will increase your revenues by 200 per year. Your required rate of return cost of capital) is 20%. Calculate the Net Present Value (NPV) of this investment. 2. Record the following transactions in the Journal and post them to the ledger 1. On Sept 1, Joe's Pizza purchased $50.00 of groceries for cash. 2. On Sept 4, Joe's Pizza received $1,000 on account from Bank of America for Pizzas provided during the month 3. On Sept 10, Joe's Pizza paid 150.00 rent for the month of September 4. On Sept 10, Joe's Pizza purchased a delivery truck for $10,000, taking out a three year auto loan for the truck. 5. On September 15, Joe paid paid his two employees $200 each for the previous two weeks salaries
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