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guapka [62]
3 years ago
12

Raymond Financing leases airplanes to airline companies. Raymond has just signed a 20-year lease agreement that requires annual

year-end lease payments of $900,000. What is the present value of the lease using a 10% interest rate?
Business
1 answer:
irinina [24]3 years ago
3 0

Answer:

7662207.35

Explanation:

We are asked to find the present value of a 20 years annuity at rate equal 10%

present \: value = annuity \times \frac{1 -  {(1 + rate)}^{ - time} }{rate}

900000 \times \frac{1 -  {1.1}^{ - 20} }{.1}  = 7662207.35

<u>R</u><u>emember:</u>

<em>on present time:</em> power is negative and the 1 comes first

1 -  {(1 + rate)}^{ - time}

<em>on future value:</em> the power is positive and comes first then you subtract 1

{(1 + rate)}^{time}  - 1

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how can electricity, communication, and transportation facilities indicate the potential for industrial growth?​
nlexa [21]

Answer:

The more electricity, communications, and transportation used in a nation's economy, it will give them a more developed country and a greater potential for increased industrialization.

Explanation:

3 0
3 years ago
A target market often includes more than one market segment
stira [4]

yes a target market often includes more than one market segment.

A target market is a array of customers inside a business's serviceable accessible market at which a business targets its marketing attempts and resources. A target market is a subdivision of the complete market for a product or service.

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8 0
3 years ago
A step out is a pricing practice in which a firm:
Katen [24]
I would say the answer is D
3 0
3 years ago
Searcy has accounts receivable of $700,000 and an allowance for doubtful accounts of $54,000. On January 24, 2020, it is learned
raketka [301]

Answer:

d. Credit to Accounts Receivable.

Explanation:

Hutley Inc. is not going to pay the $8,000 to Searcy, therefore Searcy will make the following entry to write off the balance from Account Receivables.

Debit: Allowance for Doubtful Accounts $8,000

Credit: Accounts Receivables $8,000

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5 0
3 years ago
John is trying to decide whether to expand his business or not.
wariber [46]

Answer:

B) John can expect to earn $120,000 in revenue more by expanding, but that is less than the cost of expansion, $150,000.

Explanation:

If John decides not to expand his expected revenue will be = ($100,000 x 50%) + ($300,000 x 50%) = $50,000 + $150,000 = $200,000

If John decides to expand his expected revenue will be = ($100,000 x 30%) + ($300,000 x 30%) + ($500,000 x 40%) = $30,000 + $90,000 + $200,000 = $320,000

If John decides to expand, his revenue will increase by $120,000.

Since we are not told if John's revenue is yearly or not, I assume that it includes a whole business or project cycle. The cost of expanding is $150,000 while the incremental revenue is only $120,000.

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3 years ago
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