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:
I have solved part a) because question contains only part a) however it has 3 more parts as well but that are not mentioned in the question. Part a) is explained below.
Explanation:
a) The distribution should be right skewed as most of the numbers lies at that side while using the median to correctly represent an observation in the distribution.
To represent the variability of the observations, interquartile range could be used. Since, there is a good number of expensive houses and this would increase the mean and standard deviation. So, it is better to use interquartile range to represent it, i.e. upper quartile for expensive houses, and lower quartile for less expensive houses and middle quartile for mid-range priced houses.
Answer:
<u>Generally accepted accounting principles</u>
Explanation:
Generally accepted accounting principles abbreviated as GAAPs , refer to set of accounting rules and principles to ensure clarity, consistency of reported information and to enhance reliability and comparability of accounting information.
GAAPs were prescribed by Financial Accounting Standard Board (FASB) of the United States. The accountants of public companies in United States are supposed to abide by GAAP principles while compiling accounts and preparing financial statements.
Thus, GAAPs lay emphasis upon presenting financial information which is relevant to the shareholders, which is true and can be relied upon , which is consistent and which can be compared to deduce past trends and for forming opinions and arriving at conclusions.
Answer:
Head of household.
Explanation:
Cox can qualify as a head of household because he provides full support for a minor child for more than six months.
Currently a head of household has lower tax rates compared to single filers or married people filing separately, head of household 22% tax rate starts at $52,851, while a single filer's 22% tax rate starts at $39,476.
Answer:
... the dollar is said to have depreciated (in relation to the yen) and the yen has appreciated (in relation to the dollar)
Explanation:
Appreciation means a rise in value. Depreciation means a fall in value.
From $1 = 100 yen to $1.50 = 100 yen:
- 100 yen can be exchanged for more dollars (1 instead of 1.5) => the yen has appreciated
- it takes more dollars (1.5 instead of 1) to exchange for 100 yean => the dollar has depreciated
