1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
anastassius [24]
3 years ago
11

Latting Corporation has entered into a 7 year lease for a building it will use as a warehouse. The annual payment under the leas

e will be $4,781. 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 6%, the present value of the lease payments is closest to:
Business
1 answer:
dsp733 years ago
7 0

Answer:

The completely stated  question and the multiple-choice answers include:

Latting Corporation has entered into a 7-year lease for a building it will use as a warehouse. The annual payment under the lease will be $4,781. The first payment will be at the end of the current year and all subsequent payments will be made at year-end. If the discount rate is 6%, the present value of the lease payments is closest to:  

A. $31,573

B. $22,257

C. $33,467

D. $26,688

The correct answer is: $26,688 (D)

Explanation:

First of all, we have to calculate the Present Value Interest Factor of an Annuity (PVIFA), which is the factor that can be used to calculate a series of annuities.  The formula for PVIFA is given by:

PVIFA = \frac{1-(1+r)^{-n} }{r}

where:

r = interest rate per period

n = number of periods.

There are also existing PVIFA tables for already calculated PVIFA at different interest rates per period, and at a periodic interest (discount) rate of 6% for 7 years, the PVIFA = 5.5824

Therefore the Present value is calculated thus:

Annual payments × PVIFA for 7 years at 6%

4,781 × 5.5824  (refer to the PVIFA table)

= 26,689.45 (closest to 26,688)

You might be interested in
The process of attracting individuals on a timely basis, in sufficient numbers, and with appropriate qualifications, to apply fo
irina1246 [14]

Answer:

recruitment is the correct answer.

Explanation:

  • Recruitment is a process of hiring and selecting the right and qualified person for a vacant position.
  • The recruitment process involves selecting a required candidate, sourcing attracting, investigating the job qualifications, screening, analyzing the application, strategy development, evaluation and shortlisting.
  • The advantages of the Recruitment process are increased applicant quality, increase manager satisfaction and improve employment name.
4 0
3 years ago
Veronica Mars, a recent graduate of Bell's accounting program, evaluated the operating performance of Dunn Company's six divisio
anygoal [31]

Answer:

Effect on income= -$49,500

They lost the positive contribution margin increased by the fixed costs. Veronica is wrong.

Explanation:

Giving the following information:

Veronica made the following presentation to Dunn's board of directors and suggested the Percy Division be eliminated. "If the Percy Division is eliminated," she said, "our total profits would increase by $25,500.

Percy Division

Sales= $100,000

Cost of goods sold= 76,000

Gross profit= 24,000

Operating expenses= 49,500

Net income= (25,500)

In the Percy Division, the cost of goods sold is $59,000 variable and $17,000 fixed, and operating expenses are $29,000 variable and $20,500 fixed.

None of the Percy Division's fixed costs are avoidable.

Effect on income= -contribution margin - fixed costs

Effect on income= -(100,000 - 88,000) - 37,500= -$49,500

They lost the positive contribution margin increased by the fixed costs.

4 0
3 years ago
Let’s say you’re looking to increase the visibility of your company blog. What, in addition to SEO tactics, could you do to make
zhuklara [117]

Answer:

Addition of backlinks to your Blog

Explanation:

Addition of backlinks to your blog post is one way you can make it easy for people to organically find your previous published pages

Backlinks are links created and added to a webpage that links the website or webpage to another webpage or blog post. this links makes it easier for people navigating through a company's blog to find previously posted articles without having to search them all over again on the menu page.

3 0
3 years ago
A detailed description of the typical consumer in a market segment is a(n) ___.
Debora [2.8K]
This would be a customer profile.
Hope this helps.

3 0
3 years ago
Read 2 more answers
Process operations is defined as a manufacturing process that includes: (Check all that apply.) Multiple select question. large
mixer [17]

The process operations are treated as the manufacturing process that involved the high standardization level, and the series of the sequential process.

The information related to the process operations is as follows:

  • It refers to the method or action or the operation that involved the storage or handling of the material prior, during, or after the manufacturing.
  • It involved the greater standardization level, and the sequential process series.

Therefore we can conclude that the process operations are treated as the manufacturing process that involved the high standardization level, and the series of the sequential process.

Learn more about the manufacturing here: brainly.com/question/14275016

5 0
3 years ago
Other questions:
  • A city government imposes a proportional income tax on all people who earn income within its city limits. In​ 2004, the​ city's
    14·1 answer
  • received a cheque from Karim,being full settlement of the amount owing after allowing him a cash discount of 5%​
    6·1 answer
  • When Terry Doyle of CommuniCom, Inc. created smaller, more independent maintenance units, he was performing the function of:
    6·2 answers
  • Arturo hires Kate to work in new sporting goods store. "Look," he explains, "I can only pay you $9.00 per hour. But if business
    8·1 answer
  • The following transactions occurred during July: 1. Received $1,350 cash for services performed during July. 2. Received $6,950
    8·1 answer
  • As of December 31, 2019, Sheffield Corp. had $3000 of raw materials inventory. At the beginning of 2019, there was $2500 of mate
    7·1 answer
  • There are 10,000 shares of $20 par value cumulative 7 percent preferred stock outstanding, and 90,000 shares of common stock out
    12·1 answer
  • V
    12·2 answers
  • The major difference between convertible debt and stock warrants is that upon exercise of the warrants
    6·1 answer
  • Stefan is from Spain and is visiting Denmark. He finds himself very popular among native Danes because they like his casual and
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!