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
Art [367]
3 years ago
8

What is the value today of a money machine that will pay $4,010.00 per year for 13.00 years?

Business
1 answer:
Maurinko [17]3 years ago
3 0

Answer:

The present value of the machine is $35499

Explanation:

The annual amount or annuity amount = $4010 per year.

Total number of years = 13 years

Here, the interest rate is not given so we just assume the interest rate = 6% per annum.

Since we have a total number of years and annual payment that occurs for 13 years. We are required to find the present value of the machine. So use the formula to find the present value of the annuity.

The present value of machine = (Annuity amount x (1 – (1+r)^-n) ) / r

The present value of machine = (4010(1 – (1+6%)^-13) ) / 6%

The present value of machine = $35499

You might be interested in
What’s behind gas prices
MArishka [77]

Answer:

taxes

Explanation:

there is federal, state, and government taxes included in your gas price

hope this helps :)

3 0
3 years ago
Read 2 more answers
An acquisition premium is the amount by which the price offered for an existing business exceeds the Select one: a. amount paid
MAVERICK [17]

Answer:

d. pre-acquisition market value of the target company.

Explanation:

An acquisition premium is the amount by which the price offered for an existing business exceeds the pre-acquisition market value of the target company.

An acquisition premium gives the difference between the actual amount of money paid in acquiring a target firm and the estimated real value of obtaining the firm before the acquisition.

Acquisition premium are usually recorded on the balance sheet as "goodwill."

8 0
3 years ago
Courts Distributors needed two hundred compact refrigerators on a rush basis. It contacted Eastinghouse Corporation, a manufactu
Romashka [77]

Answer:

Courts Distributors and Eastinghouse Corporation

Dispute over Contract Price

The two parties have a legal contract.  The contract was established when Courts requested Eastinghouse to send the refrigerators and bill later.

The exact price for the contract is in dispute.  This dispute can be resolved between the parties.  Reference to the market price will help resolve the dispute, otherwise, the parties may seek alternative dispute resolutions, like litigation, mediation, or arbitration.

Explanation:

a) Data and Analysis:

Eastinghouse's invoice price for the refrigerators = $140,000

Courts' adopted market price = $120,000

b) Since Courts' reference to the price is with regard to the wholesale market price, it may be that Eastinghouse quoted the retail price instead.  Since Courts is a distributor, it has the right to be charged a wholesaler's price and not a retailer's.  Therefore, we can conclude that after due reference to the prevailing market price of similar refrigerators, the two parties may agree to a price of $120,000 or a little higher.

7 0
3 years ago
   Jeb looked through a magazine and found an article called “A Look Back at the Civil War.” What would be the quickest way for
prohojiy [21]
The correct answer for this is C. Jeb should scan the article to check if the one he's looking for is in there. This way, you can efficiently use your time and lessen your hassle on reading everything what the article has to say. 
8 0
4 years ago
Julie has just retired. Her company's retirement program has two options as to how retirement benefits can be received. Under th
olchik [2.2K]

Answer:

First option will be recommended.

Explanation:

To determine which option to be taken, we calculate the net present value each option generates. The option generating higher NPV should be recommended.

- Net present value of first option = Lump sum receipt = $150,000.

- Net present value of second option will be found by discounting cash flows at investing rate 12% and calculated as followed:

 +  Present value of 20 equal annual payment of $14,000 + Present value of $60,000 paid in 20 years = (14,000/12%) x [ 1 - 1.12^(-20)] + 60,000/1.12^20 = $110,792.

As net present value of the first option is higher than the second option, first option will be recommended.

8 0
4 years ago
Other questions:
  • Swifty Corporation records purchases at net amounts. On May 5 Swifty purchased merchandise on account, $85000, terms 2/10, n/30.
    7·1 answer
  • One common system for computing a grade point average​ (gpa) assigns 4 points to an​ a, 3 points to a​ b, 2 points to a​ c, 1 po
    12·2 answers
  • What describes the nature of cause and effect in the context of the business cycle?
    5·1 answer
  • When a firm charges each customer the maximum price that the customer is willing to pay, the firm:_______.a) charges the average
    10·1 answer
  • The Japan-based multinational Sony engaged in _________ when it partnered with Shanghai Oriental Pearl Group. Together, the two
    9·1 answer
  • Sandoval needs to determine its year-end inventory. The warehouse contains 33,000 units, of which 4,300 were damaged by flood an
    13·1 answer
  • Given the following data: Average Operating Assets $250,000 Total Liabilities $100,000 Sales $600,000 Contribution Margin $150,0
    9·1 answer
  • In what circumstance would a violation of consumer
    11·1 answer
  • You anticipate your firm will need 20,000 bushels of oats in December so you hedged your position today at the closing price whe
    6·1 answer
  • Firms often consolidate industries through horizontal mergers and acquisitions to?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!