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
kirill115 [55]
2 years ago
6

Jenny Enterprises has just entered a lease agreement for a new manufacturing facility. Under the terms of the agreement, the com

pany agreed to pay rent of $12,500 per month for the next 10 years with the first payment due today. If the APR is 6.48 percent compounded monthly, what is the value of the payments today
Business
1 answer:
LiRa [457]2 years ago
6 0

Answer:

$1,107,793.41

Explanation:

The value of the payment today can be ascertained using the present value of an annuity due formula since the first payment is immediate as shown thus:

PV=monthly payment*(1-(1+r)^-n/r*(1+r)

monthly payment=$12,500

r=monthly interest rate=6.48%/12=0.0054

n=number of monthly payments in 10 year=10*12=120

PV=$12,500*(1-(1+0.0054)^-120/0.0054*(1+0.0054)

PV=$12,500*(1-(1.0054)^-120/0.0054*(1.0054)

PV=$12,500*(1-0.524003627 )/0.0054*1.0054

PV=$12,500*0.475996373 /0.0054*1.0054

PV=$1,107,793.41

You might be interested in
An income level below that which is needed to support families or households
julia-pushkina [17]
It is called Poverty threshold. The poverty thresholds are the first form of the government neediness measure. They are refreshed every year by the Census Bureau. The limits are utilized fundamentally for measurable purposes — for example, getting ready evaluations of the quantity of Americans in destitution every year.
7 0
3 years ago
Zook company is a wholesaler that buys footballs and then sells them to other businesses, such as sports authority and target. t
Misha Larkins [42]
Based on the given information above about the Zook Company which is a wholesaler company, the type of wholesaler that it falls into is in the JOBBER. It is classified as a jobber since the Zook company only has a limited merchandise as well as their functions are limited too. In addition, they do not give any feedback to the manufacturers from the retailers.
5 0
3 years ago
A common step in the testing for accounts payable is to test subsequent disbursements for improper/proper inclusion/exclusion in
galben [10]

Answer:

1. When searching for unrecorded liabilities, the auditors consider transactions recorded <u>after</u> year end.

<em>Auditors consider transactions recorded after year end to determine if it was supposed to be recorded in the current period. </em>

2. Accounts payable <u>confirmation</u> can be mailed to vendors from whom substantial purchases have been made.

<em>As a way to keep a document trail, creditors from whom substantial goods were bought from can be mailed a confirmation. </em>

3. To gain overall assurance as to the reasonableness of accounts payable, the auditor may consider <u>ratios</u>.

<em>Ratios such as the Payables turnover can be used to evaluate the reasonableness of Accounts payable. </em>

4. When auditors find unrecorded liabilities, before adjusting they must consider <u>materiality</u>.

<em> They must consider if the adjustment is material or significant enough to record. </em>

5 Auditiors need to consider <u>shipping terms</u> terms for determining ownership and whether a liability should be recorded.

<em>Shipping terms need to be considered because they can tell who owns goods in transit and therefore if a liability is needed for them. Shipping terms such as FOB Shipping point mean that the business incurs the liability as soon as the seller ships the goods. </em>

6 0
3 years ago
Prompt<br> What should you do after writing something?
finlep [7]

Answer:

revise, edit, cite sources.

Explanation:

8 0
2 years ago
Read 2 more answers
The idea that firms and resource suppliers in seeking to further their own self-interests in a competitive market economy also s
Lorico [155]
That is known as the "invisible hand"
4 0
2 years ago
Read 2 more answers
Other questions:
  • Determine whether each characteristic describes a general partnership (GP), limited liability company (LLC), both, or neither.A.
    9·1 answer
  • The difficulty of converting savings and investments to cash is referred to as ____________ risk.
    8·1 answer
  • What does advice of deposit mean on a check?
    10·1 answer
  • What motivates companies like starbucks to expand into international markets with little perceived interest for their product?
    6·1 answer
  • Keisha is giving a speech on the planets in the solar system, starting with the planet closest to the sun and ending with the fa
    11·1 answer
  • How important is following up with your potential employers after an interview?
    6·2 answers
  • What is a hallmark of assembly lines in Henry Ford's time?
    12·1 answer
  • The information listed below refers to the employees of Lemonica Company for the year ended December 31, 2016. The wages are sep
    15·1 answer
  • What is one major problem created by globalization?
    13·1 answer
  • A variable is a data characteristic that stands for a value that changes or varies over Blank______. Multiple choice question. b
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!