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MakcuM [25]
2 years ago
9

You are thinking of building a new machine that will save you $ 2 comma 000 in the first year. The machine will then begin to we

ar out so that the savings decline at a rate of 4 % per year forever. What is the present value of the savings if the interest rate is 7 % per​ year?
Business
1 answer:
Serga [27]2 years ago
4 0

Answer:

Present Value= $18,181.82

Explanation:

Giving the following information:

Savings= $2,000

The machine will then begin to wear out so that the savings decline at a rate of 4 % per year forever.

Interest rate= 7%

To determine the present value of the savings, we need to use the perpetual annuity formula with the decline rate.

PV= Cf/ (i + g)

Cf= cash flow

PV= 2,000/ (0.07 + 0.04)

PV= $18,181.82

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iogann1982 [59]

Answer:

86.4%

Explanation:

the original marked price is m

then with a sales discount of 20%

the (pre-sales tax) sale price is 100%−20%=80% of 

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that is the post-sales tax price is 108%=1.08 of the pre-sales tax price.

Therefore the final cost (i.e. the post-tax price) is

4 0
2 years ago
Crane Company purchased equipment on January 1 at a list price of $120000, with credit terms 4/10, n/30. Payment was made within
Brrunno [24]

Answer:

The cost of equipment = $127,650

Explanation:

<em>According to International Accounting Standards (IAS) 16, property plants and equipment, the cost of land includes all of the cost necessary to bring and make it ready for the intended use.  </em>

<em>These costs include purchase cost, fees and commission associated with the purchase transaction. </em>

Here in this question the installation charges, sales taxes and the cost of concrete slab all fall within the definition of IAS 16

The quotation 4/10, n/30 implies that if payment is made within =10 days, Crane would get 4% off the initial purchase price.

Since the payment was made within the discounted period, the net purchase price would be

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4 0
2 years ago
What term refers to the total compensation that an employee earns before their employer deducts taxes and withholdings?
NeX [460]

"Gross pay"

Gross pay is <em>before </em>taxes and withholdings, net pay (aka take-home pay) is what is left over <em>after </em>taxes/etc are taken out.

7 0
3 years ago
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A burger and fries cost $2.20. the burger costs $2.00 more than the fries. how much do the fries cost?
NikAS [45]
To solve this question, we need to do a substitution formula on both equations

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Burger - Fries = $ 2.00


________________________ - 

             2 Fries   = $ 0.20

                Fries    = $ 0.1
6 0
3 years ago
Which of the following do you NOT need to do upon the completion of an interview a. Draft a formal offer letter b. Evaluate your
AnnZ [28]

Answer: A. Draft a formal offer letter is not something you need to do following the compleition of an interview. After an interview, if you are qualified and wanted for hirer by the organization, they will likely draw up a formal offer letter and provide that to you when offering you the position. The formal offer letter typically includes the date of start and monetary offer the company is willing and able to pay.

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