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lyudmila [28]
3 years ago
7

The salvage value on a piece of equipment for Excavators, Inc. is expected to be $10,000 in 12 years. If the discount rate is 8%

, what is the present value of the equipment's salvage value? A : $3,220 B : $4,039 C : $3,971 D : $3,168
Business
1 answer:
DanielleElmas [232]3 years ago
4 0

Answer:

correct option is  C : $3,971

Explanation:

given data

salvage value = $10,000

time = 12 year

rate = 8 %

to find out

what is the present value of the equipment's salvage value

solution

we get here present value of the equipment salvage value that is express as

present value of the equipment = $10000 × Present value of discounting factor

put here value we get

= \frac{salvage\ value}{(1+rate)^t}

= \frac{10000}{(1+0.08)^{12}}

= 3971

so correct option is  C : $3,971

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DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive
Oksanka [162]

Answer:

Year Cashflow        [email protected]% PV

$                      $

0 (750,000)             1          (750,000)

1        350,000               0.9259    324,065

2       325,000               0.8573     278,623

3        250,000              0.7938      198.450

4        180,000               0.7350      132,300

                                        NPV         184,438

The correct answer is D. The difference in answers is due to rounding error.

Explanation:

Net present value is the diffrence between initial outlay and present value of inflow. We need to discount the cash inflows for year 1 to year 4 at 8% and then calculate the present value of cash inflows by multiplying the cash inflows by the discount factors. Finally, we will calculate NPV by deducting the initial outlay from the present value of cash inflows.

6 0
3 years ago
Which special advertising category has the objective of increasing visibility and increasing store traffic
TEA [102]
Bruh what is you talking bout I ain’t never seen to pretty best
5 0
2 years ago
The bank statement​ _________.A.may show service​ charges, EFT collections from​ customers, and EFT withdrawals B.does not inclu
kari74 [83]

Answer:

The correct answer is letter "A": may show service​ charges, EFT collections from​ customers, and EFT withdrawals.

Explanation:

A bank statement shows account holders' transactions during a certain period of time that tends to be one (1) month. This report shows the current balance in the customers' accounts including charges, Electronic Funds Transfers (EFT) collections, and withdrawals as well as payments representing inflows.

<em>Bank statements are useful for clients so they can have control of the expenditures of their accounts.</em>

5 0
3 years ago
How is an online bank different from a retail bank? A. Online bank and retail bank refer to the same entity, so there is no diff
kramer

Answer:

B. An online bank has lower operating costs than a retail bank

8 0
3 years ago
Read 2 more answers
This year Lloyd, a single taxpayer, estimates that his tax liability will be $11,350. Last year, his total tax liability was $15
Dmitrij [34]

Answer:

Lloyd needs to increase his witholding tax to $1,560 this year in order to avoid the underpayment penalty .

Explanation:

As a rule, a citizen can maintain a strategic distance from an underpayment of punishment if their retention and evaluated assessment installment measure up to or surpass one of the two safe harbours

90% of current expense risk = 90% × $11,350

= $10,215

100% of past assessment risk = $15,900

Since his(Lloyd) retention is not equal to or exceed $10,215 or $15,900

Llyod should expand retaining or make payment this year in order to stay away from underpayment punishment

= $10,215 - $8,655

= $1,560

3 0
2 years ago
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