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2 years ago

Select the correct answer.

Business

1 answer:

Dahasolnce [82]2 years ago

5 0

I would go with answer “c”

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I think this may be C

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2 years ago

Ace Leasing acquires equipment and leases it to customers under long-term sales-type leases. Ace earns interest under these arra

raketka [301]

Answer:

The lease payment will be for $ 113,751.173 during 5 years beginning at the moment the lease is signed

Explanation:

First, we discount the payment at the end of the lease

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity $150,000

time 5 years

rate 0.06

$\frac{150000}{(1 + 0.06)^{5} } = PV$

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Now we subtract form the 620,000 to know the amount to be perceived form the lease payment:

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Now we solve the PMT which makes the annuity-due of 5 payment at the beginning of the period:

$PV \div \frac{1-(1+r)^{-time} }{rate} (1+r)= C\\$

PV $507,911.0000

time 5

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[tex ]507,911 \div \frac{1-(1+0.06)^{-5} }{0.06}(+0.06) = C\\[/tex]

C $ 113,751.173

3 0

2 years ago

On the Budget Challenge Cash Flow Spreadsheet (CFS) (this file is downloadable on the "How to Play" page of the website), what c

stira [4]

Deposit column. You can also state in the comments section that it was interest earned from the checking account.

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3 years ago

Consider an offer to supply 5 paintings per year to an art gallery in Rome for the next five years. The contract is exclusive, m

IceJOKER [234]

Answer:

I will accept the offer if the price per painting is $56,312.41 or higher.

Explanation:

We will calculate the present value of the other option which is, selling our painting as a freelancer.

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rate 0.2

$315000 \times \frac{1-(1+0.2)^{-5} }{0.2} = PV\\$

PV $942,042.8241

Now, we subtract the signing bonus of 100,000

942,042.83 - 100,000 = 842,042.83

And solve for the annual proceeds from the painting we need to equalize the opportunity cost:

$PV \div \frac{1-(1+r)^{-time} }{rate} = C\\$

PV 842,042.83

time 5

rate 0.2

$842042.83 \div \frac{1-(1+0.2)^{-5} }{0.2} = C\\$

C $ 281,562.03

Now, we divide by the 5 painting per year:

$281,562.03 per year / 5 painting per year = $56,312.41

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2 years ago

Compute the discounted payback statistic for Project C if the appropriate cost of capital is 7 percent and the maximum allowable

Lelechka [254]

The answer i think is rejected because the cash flow is not stable

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2 years ago