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vitfil [10]
3 years ago
13

Suddeth Corporation has entered into a 6 year lease for a building it will use as a warehouse. The annual payment under the leas

e will be $2,468. The first payment will be at the end of the current year and all subsequent payments will be made at year-ends. If the discount rate is 5%, the present value of the lease payments is closest to (Ignore income taxes.):
Business
1 answer:
Ulleksa [173]3 years ago
6 0

Answer:

$13,153.15

Explanation:

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator

Cash flow each year from year 0 to 5 = $2,468

I = 5%

PV = $13,153.15

To find the PV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

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Which of the following production costs, if expressed on a per unit basis, would be most likely to change significantly as the p
Romashka-Z-Leto [24]

Answer:

d. Fixed manufacturing overhead.

Explanation:

As we know that

The variable cost would remain the same in case of per unit while it could be changed in values while the fixed cost would remain the same in case of values but could be changed in per unit

But in case of the fixed manufacturing overhead, if the production level varies so it changes significantly and the direct material + direct labor are the direct cost

So the correct option is d.

3 0
3 years ago
Christy enjoys baking pies from fresh fruit, especially blueberries, blackberries, and strawberries. When she goes to the market
Bess [88]

Answer:

Christy's demand for blackberries is elastic.

Explanation:

Christy purchases blueberries, blackberries, and strawberries. When the price of blackberries rises to a small extent, Christy will instead purchase strawberries or blueberries.  

This shows that the demand for blackberries is elastic. Elastic demand refers to the situation when a small change in price causes the quantity demanded to change to a great extent.

6 0
4 years ago
Can I get an example of a run on sentence
Marta_Voda [28]
 An example of a run on sentence is: I love to do gymnastics I would do it every single day if I could.
8 0
3 years ago
Read 2 more answers
If a manufacturer does not have to pay for its contribution to pollution, it will produce too much output from a social viewpoin
NISA [10]
The choices are: 
A. Too much output from a social viewpoint.
B. Inefficiently from a private viewpoint.
C. Unprofitably from a private viewpoint.
D. At a price that is too high from a social view.

I think the answer is, <span>A. Too much output from a social viewpoint. To be exempted from contribution means the manufacturer has made an innovation and management of waste that is recommendable for other industries. From the standpoint of those who have observed it has exceeded expectation. It could have made a 0 waste which is also profitable for both the community and the industry as well. </span>
7 0
3 years ago
Consider a project with only positive cash flows after year 0. If the company felt that the risk of the project was less than or
slava [35]

Answer:

E

Explanation:

The required rate of return is the rate used to discount cash flows when calculating NPV. the more risky a project is, the higher the required rate of return. So, if it is perceived that the project is less risky, the required rate of return would decrease.

Net present value is the present value of after tax cash flows from an investment less the amount invested.

Because the required rate of return is used to discount cash flows when calculating NPV, a lower rate would increase NPV  

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested. The required rate is not needed when calculating IRR. so, there would be no change in IRR if discount rate is lowered.

3 0
3 years ago
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