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sashaice [31]
4 years ago
14

Latting Corporation has entered into a 7 year lease for a building it will use as a warehouse. The annual payment under the leas

e will be $4,781. The first payment will be at the end of the current year and all subsequent payments will be made at year-ends. What is the present value of the lease payments if the discount rate is 6%?A) $31,573B) $22,257C) $33,467D) $26,688
Business
1 answer:
ira [324]4 years ago
3 0

Answer:

D) $26,688

Explanation:

The computation of the present value is shown below:

= Annual payment × PVIFA for 7 years at 6%

= $4,781 × 5.5824

= $26,688

Refer to the PVIFA table

Simply we multiply the annual payment with the PVIFA so that the accurate amount can come.

The present value is come after considering the discount rate for the given number of periods

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What factors determine business ethics?
irinina [24]

Answer:

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c. whether a company obeys the law

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3 years ago
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8 0
3 years ago
What is the payback period for the above set of cash flows? (Do not round intermediate calculations. Round your answer to 2 deci
inna [77]

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Payback Period = Year before Payback Period occurs + \frac{Cash remaining}{Cashflow in year payback happens}

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4 0
4 years ago
The dry cleaning industry is in monopolistic competition. In the short​ run, the​ profit-maximizing price is​ $10 per item and t
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Answer:

$ 0

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In other words, in the long-run, firms under monopolistic competition can only break-even, they do no obtain economic profits.

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