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sashaice [31]
3 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]3 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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Cartels control the production and pricing of goods mainly through
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the elimination of competition

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Sparty Corporation has provided the following information for its most recent year of operation:
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Answer:

E. $40,600

Explanation:

Calculation for the amount of net income reported on Sparty's income statement

Revenue $97,000

Less: Operating Expenses $39,000

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2 years ago
Sarah Parks is in the very early stages of putting together a business startup, and is thinking about writing a business plan to
Reptile [31]

Answer:

C. Summary business plan

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Read 2 more answers
Journalise the followung transactions.
katovenus [111]

Answer:

Explanation:

S/No        Date        Transaction          Dr($)          Cr($)

1             Oct.1         Rent Expense      3,600

                                    Cash                                 3,600

2.           Oct.3        Advert. Expenses  1,200

                                    Cash                                   1,200

3.            Oct.5           Supplies              750

                                     Cash                                      750

4             Oct.6       Office equipment     8000

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5             Oct.10               Cash                1 4,800

                                Accounts receivable                    14,800

6              Oct.15    Accounts payable      7,110

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7.              Oct.27    Miscellaneous             400

                                        Cash                                        400

8               Oct.30    Utilities Expenses      250

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9               Oct 31     Accounts receivable   33,100

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