Answer: $80 million per year for 25 years
Explanation:
The option you should choose is one that will guarantee you the highest present value.
This means that you need to discount the annual payment of $80 million per year for 25 years to find the present value. As you did not include a rate, we shall assume a rate of 8% for reference purposes.
The annual payment is an annuity so the present value can be calculated by:
Present value of annuity = Annuity payment * Present value interest factor, rate, no. of years
= 80,000,000 * Present value interest factor, 8%, 25 years
= 80,000,000 * 10.6748
= $853,984,000
<em>The present value of the annual payment is more than the present value of the $850 million received today so the Annual payment should be taken. </em>
Answer:
A $13,250.00
Explanation:
The formula for calculating balance at the end of a period using simple interest is as below.
A = P(1+rt)
A = final amount
P= principal amount which is $12500
r= interest rate 6% or 0.06
t = time which is 1 year
A = $12,500(1+0.06 x 1)
A = $12500 x1.06 x 1
=$12500 x 1.06
=$13,250
Answer:
Private security guards provide security for people and facilities. They typically deal with issues related to trespassing, burglary, theft, or threats to their clients.
Explanation:
Answer:
It will be a net gain for 6,325.2 after taxes
Explanation:
Bases on the MACRS at the end of the third year. we will have a book value of 7.41% Remember that under MACRS we have a half year convention so we depreciate for half a year on the assets first year. given a total year of useful life + 1
40,000 x 7.41% = 2.964
sales price: 12,000
we will pay taxes for the difference:
12,000 - 2,964 = 9.036
9036 x (1 - 30%) = 6.325,2
