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aleksandr82 [10.1K]
3 years ago
8

Poe Company is considering the purchase of new equipment costing $89,500. The projected annual cash inflows are $39,700, to be r

eceived at the end of each year. The machine has a useful life of 4 years and no salvage value. Poe requires a 10% return on its investments. The present value of an annuity of 1 and present value of an annuity for different periods is presented below. Compute the net present value of the machine.
Periods Present Value of 1 at 10% Present Value of an Annuity of 1 at 10%
1 0.9091 0.9091
2 0.8264 1.7355
3 0.7513 2.4869
4 0.6830 3.1699
A. $(22,101).
B. $(36,345).
C. $22,101.
D. $54,919.
E. $36,345.
Business
1 answer:
UNO [17]3 years ago
4 0

Answer: E. $36,345

Explanation:

Net present value = Present value of inflows - Cost of equipment

The inflow is an annuity as it is a constant amount so is calculated as:

Present value of inflows = Inflow * Present value interest factor of an annuity, 10%, 4 years

= 39,700 * 3.1699

= $125,845.03

Net present value = 125,845.03 - 89,500

= $36,345.03

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2 years ago
At December 31, Amy Jo's Appliances had account balances in Accounts Receivable of $309,000 and $600 (credit) in Allowance for U
MissTica

Answer:

Bad debt expense  $ 14.850

Explanation:

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Adjustment entry

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4 years ago
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Flauer [41]

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In this stage the performance of team starts declining due to lack of harmony and trust among the members of the team.  In the given case, Roger's team has been facing conflict over the controlling issues ,hence, we can conclude that they are at storming stage of development.

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Answer:

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