Answer: Proposal C
Explanation:
The way to solve this is to calculate the Present Values of all these payments. The smallest present value is the best.
Proposal A.
Periodic payment of $2,000 makes this an annuity.
Present value of Annuity = Annuity * ( 1 - ( 1 + r ) ^ -n)/r
= 2,000 * (1 - (1 + 0.5%)⁻⁶⁰) / 0.5%
= $103,451.12
Proposal B
Present value = Down payment + present value of annuity
= 10,000 + [2,200 * ( 1 - ( 1 + 0.5%)⁻⁴⁸) / 0.5%]
= 10,000 + 93,676.70
= $103,676.70
Proposal C
Present value = Present value of annuity + Present value of future payment
= [500 * (1 - (1 + 0.5%)⁻³⁶) / 0.5%] + [116,000 / (1 + 0.5%)⁶⁰]
= 16,435.51 + 85,999.17
= $102,434.68
<em>Proposal C has the lowest present value and so is best. </em>
Answer:
revised annual depreciation will be : 13710
Explanation:
After revision the remaining life of equipment shrank down to 2 years, so the depreciation working will be worked out to adjusted the impact of decreasing of useful life.
As per existing information the depreciation charges are calculated as :
(Cost-Salvage Value)/Useful life= (49700-4000)/10 = 4570
Accumulated Depreciation indicates that 4 years have past by (18280/4570)
now remaining years are 6 which will be reduced to 2 after revision so the new working will be as follows:
Remaining Cost :31420 (49700
-18280)
Salvage Value : 4000
Revised Remaining Useful Life : 2
Revised Calculated Depreciation Annual : (31420-4000)/2 = 13710
It can be further verified through simple math also:
Adding annual depreciation of remaining 2 years : 13710
+13710
=27420
Value available for depreciation after salvage value : 31420
-4000= 27420
Answer:
Facilitating functions
Explanation:
Facilitating functions are those in a business activity that helps make the exchange and physical processes run smoothly.
They do not involve direct exchange of title of products or physical handing of goods.
For example the activities of marketers of a product results in easy sale of the product by the manufacturer.
Also activities like financing, market research, and risk taking are all facilitating activities that make a business run smoother
Answer:
File tab in Microsoft Word is a section that gives you access to file functions like open, save, close, word options, and recent file documents. Open, Save options, and the author of the document can be found right after you click the file tab.
Explanation:
Hope it helps
Answer:
correct answer is $1,544
Explanation:
given data
sold = $40,000
mortgage loan = $38,500
solution
we know that here 1 discount point cost of buyer of loan = 1 %
so discount point = $38,500 × 1% = $38,500 × 0.01 = $385
and
Points are always paid on the loan amount = $385 × 4
Points are always paid on the loan amount = $1,540 in discount points
so correct answer is $1,544
