Answer:
$14,333.33
Explanation:
Depreciation is the systematic allocation of the cost of an asset to P/l as a measure of use. It is added over the years as accumulated depreciation which is deducted from cost to get the net book value of the asset. Salvage value is the estimated realizable cost of an asset after its useful life.
Depreciation = (cost - salvage value)/useful life
Cost of an asset includes all cost incurred to make the asset available for use.
Depreciation = ($86000 + $7000 - $5000)/6
= $88000/6
= $14,333.33
 
        
             
        
        
        
Answer:
a. Offered load = 1 lot / 4 hours = 6 cars/4 hours = 1.5 cars/hours
b. Demand rate = Total cars per 4 hours/20 minutes time
Demand rate = 6*4 / 20
Demand rate = 24/20
Demand rate = 1.2 cars/hours
Implied utilization = Demand rate / Offered load
Implied utilization = 1.2/1.5
Implied utilization = 0.8
Implied utilization = 80%
c. Capacity of the process = 1 lot / 5 hours
Capacity of the process = 6 / 5
Capacity of the process = 1.2 rentals per hours
d. Probability that all eight cars are rented at the same time
=> (1 - 0.8) * (0.8)^8
=> 0.2 * 0.1678
=> 0.03356
=> 3.36
 
        
             
        
        
        
Maturity Value = Principal  x ( 1 + Rate x Time )
Here is: 
Principal = $90,000
Rate = 6% = .06
Time = 120 / 360
Maturity value = $90,000 x ( 1 + .06 x 120/360 ) =
= $90,000 x ( 1 + .02 ) = 
= $90,000 x 1.02 = $91,800
Answer:   c. $91,800 
        
             
        
        
        
Answer:
$22,820
Explanation:
Calculation to determine Determine the present value of the par value of the bonds. 
Discount rate =8%/2 
Discount rate= 4%
Present value factor of 20 periods at 4%= ( 1 / 1.04^20 ) 
Present value factor of 20 periods at 4%=0.4564
Using this formula
 Present value of the par value of the bond = Future value of the bond x Present value factor = 
Let plug in the formula
Present value of the par value of the bond=$50,000 x 0.4564
Present value of the par value of the bond = $22,820
Therefore the present value of the par value of the bonds is $22,820