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Brut [27]
2 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]2 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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The average gross income for domestic movies (in mln) is 180

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Most of the Weekly Loss is weekend cashiers. Historically, this has been reported as box office revenue from Friday to Sunday, and holidays close to weekends. Day numbers from Friday to Sunday are also now used.

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1 year ago
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GenaCL600 [577]

Answer:

D.

Explanation:

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6 0
3 years ago
Explain the meaning of personal account,real account and nominal account,give five examples each​
zysi [14]

Answer:

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2 years ago
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Vaselesa [24]

Answer:

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Explanation:

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Pachacha [2.7K]

Answer:

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