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
vfiekz [6]
2 years ago
14

Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine Corporation. Several fina

ncing alternatives have been offered by Danning: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. Pay $1,160,000 in cash immediately. 2. Pay $461,000 immediately and the remainder in 10 annual installments of $94,000, with the first installment due in one year. 3. Make 10 annual installments of $156,000 with the first payment due immediately. 4. Make one lump-sum payment of $1,730,000 five years from date of purchase. Required: Determine the best alternative for Harding, assuming that Harding can borrow funds at a 8% interest rate. (Round your final answers to nearest whole dollar amount.)
Business
1 answer:
sattari [20]2 years ago
6 0

Answer:

Option-2 is best alternative

Explanation:

Option-1

Present value of lumpsum amount -1160000

Option-2

Annual paymentt for 10 yrs -94000

Annuity for 10 yrs at 8% 6.7101

Present value of outflowws -630749

Add: Initial amount paid -461000

Present value of outflowws -1091749

Option-3

Annual paymentt for 9 yrs -156000

Annuity for 10 yrs at 8% 6.24689

Present value of outflowws -974515

Add: Initial amount paid -156000

Present value of outflowws -1130515

Option-4

Amount paid after 5 yrs -1730000

PVF at 5 yrs at 8% 0.680583

Present value -1177409

Option-2 is best alternative

You might be interested in
According to recent data, only 36 percent of Uber's current employees are women. How do you think this situation helped perpetua
kozerog [31]

Answer and Explanation:

If we considered the business type that uber begins i.e. lack of the skilled and the experienced professionals. So here we can conclude that with the 36 pf the present employees of the uber that contains women perpetuates with a flawed corporate culture

So as per the given situation, the above represent the explanation and the same should be considered

4 0
3 years ago
Current Forecast is 2500 units, current 1st shift capacity is 1300 units. Market growth rate is 10%. How much capacity do you ne
Afina-wow [57]

Answer:

250 units

Explanation:

Calculation to determine How much capacity do you need to buy for next round

Using this formula

Next round capacity needed=Current Forecast*Market growth rate

Let plug in the formula

Next round capacity needed=2500 units*10%

Next round capacity needed=250 units

Therefore How much capacity do you need to buy for next round is 250 units

3 0
3 years ago
The production function for earthquake detectors​ (Q) is given as​ follows: Q​ = 4K​1/2L​1/2 where K is the amount of capital em
Ksivusya [100]

Answer:

k= 5 units

L = 45 units

Explanation:

check the picture attached for full explanation and i hope it helps you

3 0
3 years ago
Read 2 more answers
Suppose Foreign (Upper F )imposes a tariff on imports from Home (Upper H ). All else​ equal, this action will cause the​ long-ru
Orlov [11]

Answer:

D. increase; decrease

Explanation:

When foreign imposes a tariff on import from home then there will be decreaing the import leading to a decreased demand of domestic currency by foreigners.

Therefore, domestic currency will depreciate and foreign currency will appreciate thus this action will lead to real home/Foreign rate to increase and will decrease the nominal home/foreign exchange rate.

5 0
3 years ago
You believe you must withdraw $12,000 per month during retirement. You plan to be retired for 30 years. Assuming your money will
jek_recluse [69]

Answer:

$2,385,086

Explanation:

To answer this question, we need to use the present value of an ordinary annuity formula:

PV = A ((1-(1+i)^{-n} )/i)

Where:

  • A = Value of the annuity
  • i = interest rate
  • n = number of compounding periods

Because the interest rate is annual, it is convenient to convert it to a monthly rate.

4.5% annual rate = 0.37% monthly rate.

The number of compounding periods will be = 12 months x 30 years

                                                                            = 360 months

Now, we simply plug the amounts into the formula:

X = $12,000((1-(1 + 0.0037)^{-360} )/0.0037)

X = $2,385,086

You will need to have saved $2,385,086 if you plan to retire under the aforementioned circumstances.

7 0
3 years ago
Other questions:
  • Last year’s sales were $9,815,000 and are projected to increase by 4.5% for next year. Last year’s expenses were 41% of last yea
    14·1 answer
  • If annual demand is 12,000 units, the ordering cost is $6 per order, and the holding cost is $2.50 per unit per year, which of t
    6·1 answer
  • Job interviewers often say to job applicants, "tell me about yourself." the purpose of this request is to:
    8·1 answer
  • Bronigan’s, a maker of handheld video games, recently analyzed its manufacturing process to identify value-added and non-value-a
    5·1 answer
  • A cost that cannot be avoided or changed because it arises from a past decision, and is irrelevant to future decisions, is calle
    9·1 answer
  • Rollerbeam Inc., a provider of engineering services, is looking to hire several maintenance engineers. Rollerbeam's HR departmen
    15·1 answer
  • You are considering a project in Norway with an initial cost of NKr135,000. The project is expected to return a one-time payment
    7·1 answer
  • Telecommuters are not key to a business continuity plan (BCP) because they work from remote locations. Therefore, any disruption
    14·1 answer
  • Neadless Marcup, the department store, advertises from time to time that it has a hair salon where that famous stylist, Mr. Dan,
    14·1 answer
  • Do you think that customers are more empowered today than they were before social media and other digital communication was so p
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!