Answer:
a hands on occupation
Explanation:
I dont like sitting around
Question:
Graded assignment(towards 15% Hw grade) Saved Help Save& Exit Submit Check my work Your landscaping company can lease a truck for $7,800 a year (paid at year-end) for 6 years. It can instead buy the truck for $38,000. The truck will be valueless after 6 years. The interest rate your company can earn on its funds is 7%. 10 points
What is the present value of the cost of leasing?
Answer:
Cost of lease = $37,179.01
Explanation:
Leasing is a finance arrangement where one party (the lessor) transfers the right to use an asset to another party (the leasse) in exchange for a rent.
The cost of a lease to the leasee is the present value of the future lease payment discounted at the cost of capital.
So using the present value of annuity formula, we can work out the cost of the lease arrangement as follow:
PV =A× (1- 1+r)^(-n)/r
PV- Present Value
r- interest rate
n- number of years
A- annual lease payment
PV -
A-7,800
r-7%
n-6
PV = 7,800× (1- (1.07)^(-6)/0.07 = 37,179.01
Present Value = $37,179.01
Cost of lease = $37,179.01
Answer:
EOQ = 72 units
Explanation:
Annual demand D = 1,286 units
Ordering cost S = $47
Holding percentage I = 35%
So, 0 - 199 units, the unit cost is $66
EOQ = 
EOQ = 
EOQ = 
EOQ = 72.33998613
EOQ = 72 units
Answer:
2.14 times
Explanation:
The computation of the current ratio is shown below:
Current ratio = Current assets ÷ Current liabilities
where,
Current assets is
= Cash + marketable securities + account receivable + prepaid expense + inventory
= $10,000 + $20,000 + $30,500 + $2,000 + $34,000
= $96,500
And, the current liabilities is account payable i.e $45,000
So, the current ratio is
= $96,500 ÷ $45,000
= 2.14 times
We simply applied the above formula
