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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

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alukav5142 [94]

Answer: a. $39,304

Explanation:

Let us begin by calculating the yearly phone bill.

$63 per month so that is

= 63*12

= $756

A total of $756 per year is spent on the company phone.

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= $940 in total for the kits last year.

Add the two figures to get her total expenditure from the company.

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Subtract this from her total job benefits,

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= $39,304

$39,304 was her total employment compensation.

7 0
3 years ago
Consider a production possibilities frontier (PPF) with good X on the horizontal axis and good Y on the vertical axis. The PPF i
Ahat [919]

Answer:

C

Explanation:

The Production possibilities frontiers is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.  

As more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.

If the PPF is a straight line, it means there is a constant opportunity cost no matter the point one is on the curve

8 0
3 years ago
The doctrine that makes a defendant liable even if the defendant is without fault is called...
Elanso [62]
<span>C: strict liability

I hope this helped ya :)</span>
4 0
3 years ago
Mike is walking through a parking lot and finds Kathy lying unconscious. He puts her in his car and takes her to the hospital. T
slava [35]

Answer:

The answer to this question is c. Kathy has to pay based on a quasi contract.

Explanation:

Based on the scenario displayed above Kathy has to pay based on a quasi contract.

A  Quasi contract is a contract  that is created by a court order, not by an agreement made by the parties to the contract. For example, quasi contracts are created by the court when no official agreement exists between the parties, in disputes over payments for goods or services

In this case there has not been an official agreement between Kathy and the hospital, However she has to pay the bill presented to her based on Quasi contract which is created to prevent an individual to be unjustly enriched or from benefiting from the situation when he/she  does not deserve to do so.

Hence the answer is c. Kathy has to pay based on a quasi contract.

5 0
3 years ago
In developing a flexible budget within a relevant range of activity,
gladu [14]

Answer: d. it is necessary to relate variable cost data to the activity index chosen

Explanation:

The activity index shows how various activities have an impact on the cost of production.

When developing a flexible budget within a relevant range of activity, ome must relate variable cost data to the activity index chosen to ensure that it is indeed variable.

6 0
3 years ago
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