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
Carroll Corporation has two products, Q and P. During June, the company's net operating income was $26,000, and the common fixed
mario62 [17]

Answer:

$34,000

Explanation:

Given the above information, the computation of segment margin for product P is shown below;

Net operating profit = (Segment margin Q + Segment margin P) - Common fixed expenses

$26,000 = ($48,000 + Segment margin P) - $56,000

$26,000 = $48,000 + Segment margin P - $56,000

$26,000 = Segment margin P - $8,000

Segment margin P = $26,000 + $8,000

Segment margin P = $34,000

8 0
2 years ago
A bookstore organizes its stock by topic. It has a mystery novel section, a romance novel section, a how-to-do-it section, a tra
ANEK [815]

Answer:

The correct answer is the second option: Item usage book cover.

Explanation:

To begin with, in the field of business management that focus specifically in the bookstores when they talk about an "item usage book cover" presentation it means that the managers decide to organize the stock by topic and that is related to the book cover and therefore to its item so that is why that they would have a mystery novel section, a romance novel section and much more of that. So every customer will understand inmediately that the bookstore is structured by the item of the book that could be easily recognize sometimes with its cover.

8 0
2 years ago
Which action would a bank most likely take when deciding whether a person
borishaifa [10]

Answer:B

Explanation:A.P.E.X

5 0
2 years ago
The job outlook for physical therapists
dusya [7]

The job outlook for physical therapists B. depends on the economy. Jobs in general depend on the economy and the needs of those within it. If there is a high need for physical therapists, then the will improve or remain stable over time. If the economy starts to decline, there may be a lesser need or opportunity for physical therapists (and other professions) to find work.

8 0
2 years ago
Read 2 more answers
Why does a bank sometimes hold excess reserves?
svetoff [14.1K]
The answer is d: to protect against high prices
6 0
3 years ago
Read 2 more answers
Other questions:
  • Dinklage Corp. has 6 million shares of common stock outstanding. The current share price is $84, and the book value per share is
    15·1 answer
  • A requirement that customers receive a receipt is an example​ of:
    5·1 answer
  • Darian has decided to attend an out-of-state public four-year university. His expected expenses are shown in the table. Category
    8·2 answers
  • What would be some of the drawbacks of having the victims of a crime, rather than the state (through its public officials), pros
    7·2 answers
  • Read the spreadsheet formula below, then answer the question.
    14·1 answer
  • Bramble Corp. purchased equipment for $48800. Sales tax on the purchase was $2928. Other costs incurred were freight charges of
    9·1 answer
  • give at least 3 personal gains in your business (my gain,community gain and country gain) by considering the table below
    10·1 answer
  • If you burn garbage in your backyard and the smoke damages a neighbor's house,the damage is considered an externality.The extern
    9·1 answer
  • Janet and James purchased their personal residence 15 years ago for $300,000. For the current year, they have an $80,000 first m
    10·1 answer
  • Questionnnnnnnnn helppppp
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!