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Stels [109]
3 years ago
6

foutz corporation has entered into a 8 year lease for a piece of equipment. the annual payment under the lease will be $3,600, w

ith payments being made at the beginning of each year. if the discount rate is 17%, the present value of the lease payments is closest

Business
1 answer:
Nonamiya [84]3 years ago
3 0

Answer:

Present value of lease payments is $17720.57

Explanation:

The value of lease payments can be treated as an annuity due as the lease payments qualify the criteria of annuity- the payment amount is constant, is paid after a constant interval of time and the time is definite and known.

So, we will use the formula for the present value of annuity due as the payments are being made at the start of the period. The formula for the present value of an annuity due is attached.

PV of lease = 3600 + 3600 * [ {1 - (1 + 0.17)^-(8-1)} / 0.17 ]

PV of lease = $17720.56848 rounded off to $17720.57

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Answer:

<em>The question is incomplete, complete question is as follows:</em>

Individual Retirement Accounts (IRAs) allow people to shelter some of their income from taxation. Suppose the maximum annual contribution to such accounts is $5,000 per person. Now suppose there is a decrease in the maximum contribution, from $5,000 to $3,000 per year.

Shift the appropriate curve on the graph to reflect this change.

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Explanation:

<em>To decrease.</em>

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<em>Decreasing the saving rates which families may shelter from income tax would deter saving on each interest rate, contributing to a change in the supply of loanable funds to the left. </em>

The initial interest rate is due to a shortage of loanable funds. The lenders will also be able to increase the interest rate which they charge for loans with more inclined borrowers than lenders.

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5 0
4 years ago
4. when the total expenses are greater than the total revenues, (a) the income summary account has a credit balance. (b) the inc
irina [24]

When the total expenses are greater than the total revenues, then the income summary account has a debit balance.

An income summary account is a temporary account in which the revenue and expenses closing entries are entered to find out the profit or loss.

In the income summary account, all the revenue account closing entries are credited, and all the expenses closing entries are on the debit side.

Thus, if the credit balance is more than the debit balance, it shows the profit and if the debit balance is more than the credit balance, it shows the loss.

Learn more about "Income summary":

brainly.com/question/9122916

6 0
1 year ago
A former employee of your firm was dismissed when it was suspected that she had stolen from the petty cash account. It could not
Flura [38]

Answer:

I would reccomend her, but I would tell the other company to be careful. She may not have been proven guilty, but it doesn not mean that she did not do it. Now, it is all up to the company to make the choice.

Explanation:

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4 years ago
Online Gourmet is an online business that provides customers with recipes and all the ingredients needed to prepare a meal. This
Alja [10]

Answer:The answer is Deep customer knowledge

Explanation:

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4 0
3 years ago
In a task assignment situation, in how many different ways can five jobs be assigned to five machines if each job must be assign
Tcecarenko [31]
<span>120
   The simple answer is that 5 items can be arranged 5! (5 factorial) different ways. But let's expand upon that brief answer. We have 5 jobs and 5 machines with which to perform those jobs. So let's look at the 1st machine. Any of 5 of the jobs may be assigned to it. Now we have 4 jobs left unassigned. So let's look at the 2nd machine. For that machine, any of the 4 remaining jobs may be assigned to it, leaving 3 unassigned jobs. We can continue in that fashion, assigning at random one the of 3 remaining jobs to the 3rd machine, one of the 2 remaining jobs to the 4th machine, and finally, the only unassigned job to the 5th machine. So there's 5 * 4 * 3 * 2 * 1 = 5! = 120 different ways to assign those 5 jobs to all 5 machines.</span>
3 0
3 years ago
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