1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
lana [24]
3 years ago
7

pany is considering the purchase of a new bubble packaging machine. If the machine will provide $15,000 annual savings for 12 ye

ars and can be sold for $48,000 at the end of the period, what is the present value of the machine investment at a 15% interest rate with savings realized at year end
Business
1 answer:
finlep [7]3 years ago
4 0

Answer:

Present Value= $74,018.97

Explanation:

Giving the following information:

The machine will provide $15,000 annual savings for 12 years and can be sold for $48,000 at the end of the period.

Interest rate= 15%

<u>To determine the present value of the savings, first, we need to determine the future value at the rate provided.</u>

We need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual save

FV= {12,000*[(1.15^12)-1]}/ 0.15

FV= 348,020 + 48,000= $396,020

Now, we can calculate the present value:

PV= FV/(1+i)^n

PV= 396,020/1.15^12= $74,018.97

You might be interested in
What is the purpose of the sherman antitrust act
tamaranim1 [39]
To destory monopolies that were using their power to harm society.
7 0
3 years ago
Read 2 more answers
Alana lives in a country in which the government does not impose quotas on what can be imported or on what businesses can produc
Elis [28]

Answer:

Free-market

Explanation:

As Alana can import without paying quotas to the government the economy i nthis country is of free-market. The government doesn't try to restrict their citizens from the goods and services offered fro manother countries.

Same is true for the sale of national product to abroa,there is no qupta, tariff or additional cost involved in trade thant those generated from the transactions. It is tax-free to import and export

5 0
3 years ago
Mack writes a check to his maid, Marianne, in payment for services rendered. Marianne indorses the check in blank and gives the
Vilka [71]

Answer:

Mack, Marianne, and Martin

Explanation:

Based on the information provided within the question it can be said that in this scenario if the bank dishonors the check St. Mark can look for recovery from Mack, Marianne, and Martin. This is due to the fact that they all endorsed the check. This is because by endorsing the check you are signing the back of it which means that you are making it payable to someone else, and if the check is not accepted you are taking responsibility for paying that person. Which Mack, Marianne, and Martin all endorsed the check.

5 0
3 years ago
When the rate of inflation is equal to the interest rate on beth's deposit, the purchasing power of her depositrises over the co
Readme [11.4K]
Her purchasing power over the year remains the same.

Since the prices (inflation) rise with the same pace as the value of the money (interest rate), Beth can keep buying the same amount of products. Her purchasing power remains equal.
4 0
3 years ago
What are the supply shifters?
vodka [1.7K]

Answer:

All factors influencing supply other than price of the commodity.

Explanation:

Supply shifters are all factors influencing supply (other than price of the commodity) such as relative price, level of technology, cost of production, weather, future price expectations, number of producers, natural disasters, government policy and aims of the producer. These factors can shift supply either to the left or right.

8 0
3 years ago
Read 2 more answers
Other questions:
  • Moonbeam Company manufactures toasters. For the first 8 months of 2017, the company reported the following operating results whi
    12·1 answer
  • Why do the us government intervene in the economy during the finanacial crisis in 2008
    15·1 answer
  • Why are some industries regulated?
    9·1 answer
  • Jake manages a grocery store in a country experiencing a high rate of inflation. He is paid in cash. On payday, he immediately g
    11·1 answer
  • What is licensure? I’m doing intro to business
    12·1 answer
  • After a new company has developed a customer base, management needs to build more structure into the organization. In Greiner’s
    9·1 answer
  • erry, a partner in the JSK partnership, begins the year on January 1, 2011 with a capital balance of $20,000. The JSK partnershi
    10·1 answer
  • The Up and Coming Corporation's common stock has a beta of 0.9. If the risk-free rate is 4 percent and the expected return on th
    9·1 answer
  • When spoiled goods have a disposal​ value, the net cost of the spoilage is computed by​ ________. A. adding the costs to complet
    11·1 answer
  • Mary Walket, president of Rusco Products, considers $14,000 to be the minimum cash balance for operating purposes. As can be see
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!