Answer:
The present value of the lease is $50,626
Explanation:
A fix Payment for a specified period of time is called annuity. The discounting of these payment on a specified rate is known as present value of annuity.
In this question the lease payment of $8,000 per year for ten years paid immediately at a rate of 12% is an advance annuity.
Formula for Present value of advance annuity is as follow
PV of annuity = P +P x [ ( 1- ( 1+ r )^-(n-1) ) / r ]
Where
P = Annual payment = $8,000
r = rate of return = 12%
n = number of years = 10 years
Placing values in the formula
PV of annuity = $8,000 + $8,000 x [ ( 1- ( 1+ 0.12 )^-(10-1) ) / 0.12 ]
PV of Annuity = $50,626
Answer:
The answer is A.) Recognized in the current period, regardless of whether the percentage-of-completion or completed contract method is employed.
Explanation:
The long -run cost function can be estimated using either time-series cost-output data collected on a plant (or firm) whose size has been variable over time, or cross-sectional cost-output dasta collected on a sample of plants,(firms) of different sizes at a particular point on time.
It has the name of component the atomic number and the amount of atoms and protons that are in the component
Answer:
the amount paid during the year is $16,875
Explanation:
The computation of the amount paid during the year is shown below:
Opening Balance $3,757
Add: Wages expense $15,188
Less: Closing Balance -$2,070
Amount Paid $16,875
Hence, the amount paid during the year is $16,875
We simply applied the above formula so that the correct value could come
And, the same is to be considered