Answer:
$58,002.60
Explanation:
First, it is clear to include the $21,000 as part of the value of the equipment.
Now, the $9,000 annual payment after every year for six years need to be presented in its present value, meaning what is the value of those future amounts of $9,000 on June 30, 2018.
To calculate the present value of annuity (annuity means constant and equal payments) for those 6 payments of $9,000, we would need the Present Value Factor which is supplied from the Present Value Table.
Looking at 12% for 6 periods ("six annual installments") on the table, it gives the PV factor of 4.1114.
Just multiply $9,000 by 4.1114 and we get 37,002.60
Finally add the downpayment of $21,000 with the present value $37,002.60 and we would get the total value of the equipment of 58,002.60
Answer:
C) Atlanta Company
Explanation:
Let's bear in mind that equity is an advantage that allows your company to buy and sell more.
So more equity means more ability to buy and sell and less the possibility of going bankrupt.
Liability on the other hand also gives advantage in trade r company , so more liability shows strongness of the company.
Now let's compare the equity and liability of the both companies
Atlanta Company
Total liabilities $ 429,000
Total equity 572,000
Spokane Company
Total liabilities $ 549,000
Total equity 1,830,000
The equity ratio is about 1:3
While liability is about 1:1.2
So Atlanta company has more riskier structure
No , he is not correct
Explanation:
He's not right, because other factors, such as recession, economic crisis, large debts, etc, might be the source of the bad performance.
It means not that bad performance stops next year, so a lot of money can be wasted if the bad performance carries on.
Investors find some negative factors significant to mutual funds, like high cost ratios paid to the investor, undisclosed front and back-end costs, lack of control over investment decisions and skewed returns, that are perceived to be bad investments.
Answer:
3,000,000/300=10,000 hours of machine being used
8000 hours used to make products
10,000-8,000=2000 hours were unused capacity
cost of unused capacity= 2000*300=600,000
Explanation: