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Dafna1 [17]
2 years ago
7

the lease on a new office requires an immediate payment of $24,000 (in year 0) plus $24,000 per year at the end of each of the n

ext 10 years. at a discount rate of 14 percent, what is the present value of this stream of lease payments?
Business
1 answer:
Novosadov [1.4K]2 years ago
6 0

Answer:

<em><u>The answer is</u></em>: <u>$ 20,640 every year.</u>

<u />

Explanation:

<u>Leasing a new office requires an immediate payment of $ 24,000 (in year 0)</u>, plus $ 24,000 per year at the end of each of the next 10 years, which would be a total of $ 240,000 in 10 years, with a fee <u>Discount of 14 percent</u>, would be 240,000 x 0.14 = $ 33,600 in those 10 years, which would be $ 3,360 annually, <u>which subtracted from the $ 24,000 annually</u> would be a total of: $ 20,640.

<em><u>The answer is</u></em>: <u>$ 20,640 every year.</u>

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balandron [24]
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2 years ago
The following information relates to last year's operations at the Legumes Division of Gervani Corporation:
yanalaym [24]

Answer:

The Legume Division's net operating income last year was d. $45,000

Explanation:

Turnover (on operating assets) = Total Sales/ Operating assets

From the formula,

Operating assets = Total Sales/Turnover (on operating assets) = $900,000/3 = $300,000

Return on investment (ROI) is calculated by using following formula:

ROI = Net income/Total investment

Net Income = ROI x Total investment

At the Legumes Division of Gervani Corporation, Total investment  = Operating assets = $300,000

Net Income = 15% x $300,000 = $45,000

7 0
2 years ago
1. In each of the following situations, identify which of the twelve principles is at work
aleksklad [387]

Answer:

a. The true cost of something in its cost of opportunity

Explanation:

Opportunity cost is the cost which is defined as the cost or expense of one item which is lost in order to get the opportunity to do or to consume something else. In simple words, it is the value or the cost of the next best available alternative.

So, when the person select to bought the textbooks through Chegg instead paying the higher price for the same books through the bookstore. Under this situation, the principle applies is the cost of something in its opportunity cost.

8 0
2 years ago
Can someone please help me
Andrew [12]

Answer:

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8 0
2 years ago
Read 2 more answers
Kingbird Industries had one patent recorded on its books as of January 1, 2020. This patent had a book value of $249,600 and a r
dimulka [17.4K]

Answer:

The amount patent(s) should be reported on the December 31, 2020, balance sheet, assuming monthly amortization of patents, is $32,300.

Explanation:

This can be calculated as follows:

Patent book value = $249,600

Remaining useful years January 1, 2020 = 8

Remaining useful months of the patents from January 1, 2020 = Remaining useful years January 1, 2020 * 12 8 * 12 = 96

Monthly Patent book value = Patent book value / Remaining useful months = $249,600 = $2,600

Patent book value amortized from January 1, 2020 to December 1, 2020 = Monthly Patent book value * 12 = $2,600 * 12 = $31,200

Legal fee incurred = $93,500

Number of months from January 1, 2020 to December 1, 2020 = 11

Relevant months of legal fee incurred starting from December 1, 2020 = Remaining useful months of the patents from January 1, 2020 - Number of months from January 1, 2020 to December 1, 2020 = 96 - 11 = 85

Monthly legal fee = Legal fee incurred / Relevant months of legal fee incurred starting from December 1, 2020 = $93,500 / 85 = $1,100

Amount to report = Patent book value amortized from January 1, 2020 to December 1, 2020 + Monthly legal fee for December 1, 2020 only = $31,200 + $1,100 = $32,300

Therefore, the amount patent(s) should be reported on the December 31, 2020, balance sheet, assuming monthly amortization of patents, is $32,300.

3 0
2 years ago
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