1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
nikklg [1K]
3 years ago
5

Lane co. has a machine that cost $500,000. it is to be leased for 20 years with rent received at the beginning of each year. lan

e wants a return of 10%. calculate the amount of the annual rent.
Business
1 answer:
Pavlova-9 [17]3 years ago
3 0
Use the formula of the present value of an annuity due which is
Pv=pmt [(1-(1+r)^(-n))÷r]×(1+r)
Pv present value 500000
PMT amount of the annual rent?
R rate of return 0.1
N time 20 years

Solve the formula for PMT
PMT=pv÷[(1-(1+r)^(-n))÷r]×(1+r)
PMT=500,000÷(((1−(1+0.1)^(−20))
÷(0.1))×(1+0.1))
=53,390.73 round your answer to get 53391
You might be interested in
Correct answers will get extra!!! Points
lutik1710 [3]
1. True
2. False
3. True

Sorry if I get the wrong answers!!!
8 0
3 years ago
Payne, Inc., a nonpublicly traded company, implemented a defined benefit pension plan for its employees on January 2, year 2. Th
Dovator [93]

Answer:

b. $25,000

Explanation:

For computing the pension liability amount, we need to do apply the formula which is shown below:

= Projected benefit obligation - Fair value of plan assets

= $103,000 - $78,000

= $25,000

The net periodic pension cost and the employer's contribution is not relevant. So, these items are ignored and hence not included in the computation part.

The excess amount is shown as a pension liability.

7 0
4 years ago
Identify and explain two dufference between the public sector and private sector
olga nikolaevna [1]

Public Sector: the part of an economy that is controlled by the government.

( The government controls the income, and everything part of a business)

Private Sector: the part of the national economy that is not under direct government control.

( Sometimes referred to as " a citizen run business" in which a citizen makes all the choices and decisions for what is best for their business)

3 0
3 years ago
Issuance of common stock for cash affects which basic element of financial statements? Revenues Equity Losses Liabilities
weeeeeb [17]

Answer:

Equity

Explanation:

8 0
3 years ago
Marta's boss tells off-color jokes and tolerates sexually based teasing by male employees of women employees. when she complains
natta225 [31]
First, it is an example of POOR MANAGEMENT. The whole scenario is an example of sexual harassment.
She can do three things; report it higher and risk retaliation, accept it as joking, and lastly LEAVE, get another job.
3 0
4 years ago
Other questions:
  • A test that determines whether disease is actually present is
    12·2 answers
  • Bean​ Brewers, Inc., a manufacturer of coffee​ makers, had the following​ activities, allocated​ costs, and allocation​ bases: A
    12·1 answer
  • LO 8.5Identify several causes of a favorable material quantity variance.
    13·1 answer
  • If a market basket of goods cost $100 is the US and 70 euros in France, then the PPP exchange rate would be $.70/euro.A. TrueB.
    15·1 answer
  • On a CVP chart, on either side of the break-even point, the vertical distance between the total sales line and the total cost li
    10·1 answer
  • You want to invest an amount of money today and receive back twice that amount in the future. You expect to earn 9 percent inter
    14·1 answer
  • Some proponents of labor law reform believe that
    14·1 answer
  • The management of Stanforth Corporation is investigating automating a process. Old equipment, with a current salvage value of $2
    12·2 answers
  • Whistle Stop pays a constant annual dividend of $4 on its stock. The company will maintain this dividend for the next 3 years an
    6·1 answer
  • Journalize the entries to record the following selected bond investment transactions for Hall Trust (refer to the Chart of Accou
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!