Question
Your goal is to be able to withdraw $10,000 for each of the next three years beginning one year from today and also to withdraw
Your goal is to be able to withdraw $10,000 for each of the next three years beginning one year from today and also to withdraw $50,000 four years from today. The return on the investment is expected to be 3%. The amount that needs to be invested today is closest to:
$72,711.
$110,383.
$89,755.
$65,238.
Monster Inc. recently purchased an equipment. The price negotiated with the seller was $20,000. Aqua also paid sales tax of $2,000 on the purchase, maintenance contracts of $2,200 to cover ordinary repairs for the first year of operation, and shipping and preparation costs of $500. At what amount should the equipment be recorded on the balance sheet prior to recording depreciation expense?
26,800
24,700
22,500
22,000
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