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algol [13]
3 years ago
10

Sandra Morris is presently leasing a small business computer from Eller Office Equipment Company. The lease requires 10 annual p

ayments of $11,000 at the end of each year and provides the lessor (Eller) with an 11% return on its investment. You may use the following 11% interest factors:
9 Periods 10 Periods 11 Periods
Future Value of 1 1.999 2.15892 2.33164
Present Value of 1 0.50025 0.46319 0.42888
Future Value of Ordinary Annuity of 1 12.48756 14.48656 16.64549
Present Value of Ordinary Annuity of 1 6.24689 6.71008 7.13896
Present Value of an Annuity Due of 1 6.74664 7.24689 7.71008

Required:
a. Assuming the computer has a ten-year life and will have no salvage value at the expiration of the lease, what was the original cost of the computer to Eller? SHOW YOUR WORK.
b. What amount would each payment be if the ten annual payments are to be made at the beginning of each period? SHOW YOUR WORK.
Business
1 answer:
Andre45 [30]3 years ago
7 0

Answer: a. $73,810.88

b. $10,185.18

Explanation:

a. The payments of $11,000 are constant so this can be considered an Annuity.

The cost of the Computer is it's present value which is,

Present Value of Annuity = Annuity Payment * Present Value Interest Factor of Annuity, 11%, 10 periods

= 11,000 * 6.71008 (Payment is made at the end of the year so this is an Ordinary Annuity)

= $73,810.88

b. When an Annuity is instead paid at the beginning of the period it is considered to be an Annuity due.

The formula is the same but for the figures ,

Present Value of Annuity Due = Annuity * Present Value Interest Factor of an Annuity Due, 11% , 10 periods

73,810.88 = Annuity * 7.24689

Annuity = 73,810.88/7.24689

= $10,185.18

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Answer:

b. $10

Explanation:

The computation of the cost per shirt is shown below:

= (The cost of its factory, raw materials, and labor) ÷ (production level)

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Since we have to compute the cost per shirt before the increase in production level so we do not consider the increased production level and increase labor and raw material expense.

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3 years ago
Edmund must pay $6 each for punk rock video cassettes, ????. Edmund is paid $24 per sack for accepting garbage, ????, and his re
Reil [10]

Answer:

The equation for Edmund's budget line is 6C - 24G = 48

Explanation:

A budget line shows all possible combinations of two commodities that a consumer can buy at a given income level and at given market prices of commodities. The equation of the budget line is as follows.

M = (Px).X + {Py).Y where

M = Income

Px = Price of commodity X

X = Units of commodity X purchased

Py = Price of commodity Y

Y = Units of commodity Y purchased

In this question, Edmund's income is $48. Let C represent the units of punk rock video cassettes that he buys. Each one costs $6.

In addition, rather than spending on another commodity, he earns $24 per sack for accepting garbage. Let G represent the number of garbage sacks he accepts. Putting these values in the above equation, we have:

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Rearranging the equation, we have the final answer, which is:

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Ludmilka [50]

[ Answer ]

\boxed{Brisket}

[ Explanation ]

Brisket - Cut from breast or lower chest. Brisket comes from a cow or veal

Brisket is ideal for smoking because of its high fat content. When smoking meat, if the meat does not have lots of fat and is thing, the smoking process can dry out the meat. With brisket, the meat is very fat, causing the meat not to dry out and getting a tender juicy flavor.

When lighting a campfire or barbecue, you may notice lots of smoke. The smoke may affect your breathing, make you thirsty, or dry you out. This is the same affect of the meats. The smoke provides lots more flavor for the meat, and dries it out, if there is not enough fat on the meat.

\boxed{[ \ Eclipsed \ ]}

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Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

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An effect of the Sarbanes-Oxley Act of 2002 was to reduce the accounting profession’s level of self-regulation.

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