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Brut [27]
3 years ago
9

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 co

sting $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
Business
1 answer:
Anna [14]3 years ago
5 0

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

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Coins, currency, demand deposits and travelers checks fit what definition of money supply?
Levart [38]

the answer is in fact M1

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3 years ago
What is a beneficiary? Question 50 options: The person who files insurance claims on your behalf The person who determines wheth
Zina [86]
A beneficiary in the broadest sense is a natural person or other legal entity who receives money or other benefits from a benefactor. For example, the beneficiary of a life insurance policy is the person who receives the payment of the amount of insurance after the death of the insured.
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3 years ago
Breakin Away Company has three employees—a consultant, a computer programmer, and an administrator. The following payroll inform
alekssr [168]

Answer:

Gross pay:

  • consultant $4,000
  • computer programmer $3,300
  • administrator $2,800

Net pay:

  • consultant $2,767.98
  • computer programmer $2,295.48
  • administrator $1,993.98

Explanation:

                                           regular earnings     overtime    withholding  

                                                                                              allowances

Consultant                        $4,000 per week       N/A                2

Computer programmer          $60 per hour        1.5                  1

Administrator                          $50 per hour          2                  2

computer programmer worked 50 hours = ($60 x 40) + ($60 x 10 x 1.5) = $3,300

administrator worked 48 hours = ($50 x 40) + ($50 x 8 x 2) = $2,800

Social security taxes:

  • Consultant = 6% x $4,000 = $240                        
  • Computer programmer = 6% x $3,300 = $198        
  • Administrator = 6% x $2,800 = $168

Medicare taxes:

  • Consultant = 1.5% x $4,000 = $60                        
  • Computer programmer = 1.5% x $3,300 = $49.50        
  • Administrator = 1.5% x $2,800 = $42

Federal income taxes:

  • Consultant: amount subject to withholding = $4,000 - (2 x $75) = $3,850. Federal income taxes = $356.90 + [28% x ($3,850 - $1,796) = $932.02                        
  • Computer programmer = amount subject to withholding = $3,300 - (1 x $75) = $3,225. Federal income taxes = $356.90 + [28% x ($3,225 - $1,796) = $757.02            
  • Administrator = amount subject to withholding = $2,800 - (2 x $75) = $2,650. Federal income taxes = $356.90 + [28% x ($2,650 - $1,796) = $596.02  

Gross pay:

  • consultant $4,000
  • computer programmer $3,300
  • administrator $2,800

Net pay:

  • consultant $4,000 - ($240 + $60 + $932.02) = $2,767.98
  • computer programmer $3,300 - ($198 + $49.50 + $757.02) = $2,295.48
  • administrator $2,800 - ($168 + $42 + $596.02) = $1,993.98
6 0
3 years ago
1. Assume you are planning to invest $200 each year for four years and will earn 8 percent per year. Determine the future value
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Answer:

The future value of the $200 invested yearly for 4 years at 8% is $973.32

Explanation:

The future value of an immediate annuity is given by the formula = (1+r)*[P*((1+r)^n-1)/r]

P=is the periodic payment of $200

r=rate of return=8 percent

n=number of years=4

By slotting the variables into the formula we have:

Fv=(1+0.08)*(200*((1+0.08)^4-1)/0.08)

FV=$973.32

Judging by the concept of time value of money, it is expected that the sum invested at interest would have been much more at maturity of the investment as $1 today should give a lot more than $1 in future.

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3 years ago
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<u>Answer:</u>

Business management is dealing with the coordination and association of business exercises. This usually incorporates the generation of materials, cash, and machines, and includes both advancement and promoting. The management is responsible for sorting out for arranging, controlling, and coordinating the business' assets so they can meet the targets of the approach.

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2 years ago
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