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Wittaler [7]
3 years ago
13

A printer costs $900. Its salvage value after 5 years is $300. Annual maintenance is $50. If the interest rate is 8%, the equiva

lent uniform annual cost is
Business
1 answer:
Irina-Kira [14]3 years ago
8 0

Answer:

equivalent annual cost = $224.27

Explanation:

given data

printer costs = $900

salvage value = $300

time = 5 year

Annual maintenance = $50

interest rate = 8%

solution

we get here uniform annual cost that is

equivalent annual cost = net present value ÷ [ 1 - \frac{ ( 1+r)^{-t} }{r} ] + annual maintenance cost ..................1

here net present value =900-300 ×  \frac{1}{(1+0.08)^5} = $408.35

put here value

equivalent annual cost = \frac{408.35}{\frac{1-(1+0.08)^{-5}}{0.08} } + 50

equivalent annual cost = $224.27

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Show them your product has value
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4 years ago
Which domain is the most common and reserved for commercial organizations and businesses?
kakasveta [241]

Answer:

The most common and reserved domain for commercial organizations and businesses is:

B) com

Explanation:

Some business organizations have also started the extension ".biz" as their domain.  But, this is not common.  Many use the ".com" domain.  The ".net" domain is also used by some business organizations.  Again, this is not common.  The ".org" domain is mostly used by nonprofit-making organizations.

3 0
3 years ago
You wish to earn a return of 10% on each of two stocks, A and B. Each of the stocks is expected to pay a dividend of $4 in the u
Shtirlitz [24]

Answer:

a. will be higher than the present value of stock B

Explanation:

Use the formula for dividend discount model (DDM) to calculate the price of each stock;

<u>For Stock A</u>

Price = Div1 /(r-g)

where Div 1 = next year's expected dividend

r = required rate of return

g = dividend growth rate

Price = 4 / (0.10- 0.06)

Price = $100

<u>For Stock B</u>

Price = Div1 /(r-g)

Price = 4 / (0.10 - 0.05)

Price = $80

Therefore, the intrinsic value of stock A  will be higher than the present value of stock B

3 0
4 years ago
on april 1, a company takes on an 18-month job and receives a $10,000 advance that is recorded in revenue. if no adjusting entry
Scilla [17]

if no adjusting entry is made at year-end, the financial statements will be affected:

Net - income: will be overstated

Assets: will be overstated

<h3>What are Financial statements?</h3>
  • The financial actions and position of a company, individual, or other entity are formally recorded in financial statements (also known as financial reports).
  • The presentation of pertinent financial data is organized and presented in an understandable style.
  • The purpose of financial statements is to give information about an organization's financial situation, performance, and changes in financial position that may be used by a variety of users to make financial decisions.
  • Financial statements must be clear, pertinent, dependable, and similar.
  • The financial condition of an organization is directly tied to the reported assets, liabilities, equity, income, and expenses.

To learn more about financial statements, refer to:

brainly.com/question/14951563

#SPJ4

7 0
1 year ago
When merchandise is sold and the perpetual system of inventory is used, the journal entry for a sale would include:_____.a. debi
ki77a [65]

Answer:

b. debiting Accounts Receivable and crediting Sales.

Explanation:

When merchandise is sold and the perpetual system of inventory is used, the journal entry for a sale would include debiting Accounts Receivable and crediting Sales.

A perpetual system of inventory can be defined as a method of financial accounting, which involves the updating informations about an inventory on a continuous basis (in real-time) as the sales or purchases are being made by the customers, through the use of enterprise management software applications and a digitized point-of-sale equipment.

Under a perpetual system of inventory, updates of the journal entry for cost of goods sold or received would include debiting accounts receivable and crediting sales immediately as it is being made or happening. The advantage of the perpetual system of inventory over the periodic system of inventory is that, it ensures the inventory account balance is always accurate provided there are no spoilage, theft etc.

In Accounting, to record a journal entry for a sale on account, the account receivable would be debited because it is an asset and shall be increased with debits while crediting the sales account for the amount being paid by the customer.

6 0
3 years ago
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