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
ElenaW [278]
3 years ago
12

Sutton Corporation, which has a zero tax rate due to tax loss carry-forwards, is considering a five-year, $6,000,000 bank loan t

o finance service equipment. The loan has an interest rate of 10 percent and would be amortized over five years, with five end-of-year payments. Sutton can also lease the equipment for five end-of-year payments of $1,790,000 each. How much larger or smaller is the bank loan payment than the lease payment?
Business
1 answer:
MArishka [77]3 years ago
4 0

Answer:

Ans. The loan payment is $1,582,784.88, therefore is smaller than the lease by $207,215.12

Explanation:

Hi, first we have to find out the amount to pay for the loan every year in order to verify if the loan is cheaper or more expensive than the lease, we have to use the following formula and slove it for "A".

PresentValue=\frac{A((1+r)^{n}-1) }{r(1+r)^{n} }

Now, we solve for A

6,000,000=\frac{A((1+0.10)^{5}-1) }{0.10(1+0.10)^{5} }

6,000,000=\frac{0,61051}{0,161051} A

6,000,000=A(3,790786769)

A=1,582,785.88

Now we can see that the lease is more expensive than the loan, this is how to find out for how much.

1,790,000- 1.582.784,88 = 207.215,12

Best of luck.

You might be interested in
Suppose that a local supermarket sells apples and oranges for 50 cents apiece, and at these prices is able to sell 100 apples an
dezoksy [38]

Answer:

e. price elasticities of demand for apples and oranges are the same over these price ranges

Explanation:

Price elasticity of demand measures the responsiveness of quantity demanded to changes in price.

Price elasticity = percentage change in quantity demanded / percentage change in price

Percentage change in price = (50-40) / 50 = 0.2 × 100 = 20%

Percentage change in quantity demanded of Apples = (120 - 100) / 100 = 0.2 × 100 =

20%

Percentage change in quantity demanded of oranges = (240 - 200) / 200 = 0.2 × 100 = 20%

Price elasticity of demand for oranges = 20% / 20% = 1

Price elasticity of demand for Apples = 20% / 20% = 1

When coefficient of elasticity is equal than one, elasticity of demand is unit elastic.

This implies that the elasticity of demand for Apples and oranges are the same. A change in the price of oranges and apples would lead to the same proportional change for each of the demand for Apples and oranges.

I hope my answer helps you

7 0
3 years ago
Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100000 for the year. A
Darya [45]

Answer:

Overhead rate for ordering and receiving = $300 per order.

Explanation:

Given Activity costs and activity drivers

Activity                                          Overhead Cost            Driver Activity

Ordering & Receiving Order           $150,000                     500 orders

Machine Setup                                  $324,000                    450 setups

Machining                                          $1,587,500                   125,000 MH

Assembly Parts                                 $1,260,000                   1,000,000 parts

Inspection                                           $330,000                        500 inspections

Under activity based costing the rates are based on the nature of activity and the rates are based on number of those activities per driver. As for ordering and receiving there are total of 500 orders and total cost = $150,000 that is cost per order will be computed.

Overhead rate for ordering and receiving = $150,000/500 orders = $300 per order.

6 0
3 years ago
while the washington family was gone for the weekend, their home was broken into and robbed. manny, a professional boxer who liv
Kisachek [45]

Manny's acts would be a past factor in any lawsuit he filed against Mr. Washington, so Manny would lose. Filipino boxer Manny Pacquiao competed as a professional from 1995 until 2021. regarded as one of the greatest professional boxers ever by boxing historians...

<h3>Where does Manny stand historically?</h3>
  • On ESPN's list of the top boxers, pound-for-pound, over the past 25 years, Pacquiao was placed second in 2016. Pacquiao is ranked by BoxRec as the third-best boxer of all time, pound for pound, and as the best Asian boxer ever.
  • A boxer who has won major world championships in eight different weight divisions is known as an octuple champion. The only boxer in history, Manny Pacquiao, has won twelve major world championships in just eight years.

To learn more about Manny pacquiao refer to:

brainly.com/question/28774013

#SPJ4

3 0
1 year ago
The reserve requirement is​ 10%. Suppose that the Fed ​$ worth of U.S. government securities a bond​ dealer, electronically the​
victus00 [196]

Answer:

D. The money supply decreases by ​$150,000.

Explanation:

Note: This question is not complete as some figures are omitted. The full question is therefore presented first before answering the question as follows:

The reserve requirement is​ 10%.

Suppose that the Fed sells ​$150,000 worth of U.S. government securities from a bond​ dealer, electronically debiting the​ dealer's deposit account at Reliable Bank.

Which of the following correctly describes the immediate effect of this transaction on the money​ supply?

A. The money supply decreases by ​$1,500,000

B. The money supply decreases by ​$135,000.

C. There is no change in the money supply.

D. The money supply decreases by ​$150,000.

E. None of the above.

The explanation to the answer is now provided as follows:

This is an example of Open market operations (OMO).

Open market operations (OMO) is a monetary policy strategy in which the central bank such as the Federal Reserve sells or purchases government securities in order to implement a particular monetary policy.

When the central bank sells government securities on the open market, it aims to reduce the money supply by the worth of the securities. This is called a contractionary monetary policy.

On the other hand, when the central bank purchases government securities on the open market, it aims to increase the money supply by the worh of the government securities. This is called an expansionary monetary policy.

From the question, the sale of ​$150,000 worth of U.S. government securities from a bond​ dealer is a contractionary monetary policy and it will reduce the money supply by exactly $150,000.

Therefore, the correct option is D. The money supply decreases by ​$150,000.

8 0
3 years ago
Assume the firms operating in an oligopolistic market experience a relatively small change in marginal costs. According to the k
leonid [27]

Answer:

B) Leave the equilibrium price unchanged.

Explanation:

Oligopolistic market is the arrangement where few companies offer same product to the customers. There is very less competition in the market so every supplier has fair chance for operating their business successfully. The kinked demand model curve in oligopolistic market would leave the equilibrium price unchanged.

3 0
3 years ago
Other questions:
  • Flaherty is considering an investment that, if paid for immediately, is expected to return $140,000 five years from now. If Flah
    6·1 answer
  • Your factory has been offered a contract to produce a part for a new printer. The contract would last for three​ years, and your
    15·1 answer
  • The ____ of startup ventures depends heavily on the entrepreneur's personal resources
    5·1 answer
  • Recently passed rules for defining academic progress and graduation rates for ncaa division i teams shift more responsibility fo
    9·1 answer
  • g the following population and employment data for the United States (2000–2016), answer three questions. Instructions: Enter yo
    5·1 answer
  • The following are the current​ month's balances for Toys​ Galore, Inc. before preparing the trial balance. Accounts Payable $ 5,
    14·1 answer
  • Helen, age 17, wanted to buy a motorcycle. She did not have the money to pay cash but persuaded the dealer to sell a cycle to he
    11·1 answer
  • calculator solutionvChang is investing $2,500 today and will do so at the beginning of each of the next six years for a total of
    5·1 answer
  • In the early 2000s, easy credit made real estate the investment of choice in the United States. By the end of the decade, howeve
    8·1 answer
  • Carrie billed her legal clients $6,000 for legal work completed during the month. This
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!