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sweet [91]
3 years ago
11

Machine X has an initial cost of $10,000. It is expected to last 12 years, to cost $200 per year to maintain and to have a salva

ge value of $1,000 at the end of its useful life. The equivalent uniform annual cost of the machine at 8% interest is most nearly ___________.A. 51,547.B. $1,000.C. 51.475.D. 51,160.E. $1,750.
Business
1 answer:
solong [7]3 years ago
3 0

Answer:

C. $1.475

Explanation:

Initial cost of Machine X = $10,000

Annual maintenance cost = $200

Salvage value = $1,000

Interest rate = 8%

Useful life = 12 years

<u>Calculation of the equivalent uniform annual cost</u>

EUAC = Initial cost of the machine X (A/P, i, n) + Annual maintenance cost - salvage value(A/F, i, n)

EUAC = 10,000(A/P, 8%, 12) + 200 - 1,000(A/F, 8%, 12)

EUAC = [10,000 * 0.1327] + 200 - [1,000 * 0.0527]

EUAC = 1,327 + 200 - 52.7

EUAC = 1,474.30

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uysha [10]

Answer:

YTM approximated 4.08%

Explanation:

If the price of the bond changes to 1,060

we will need to calcualte the YTM

we could do it with an approxmation method like this:

YTM = \frac{C + \frac{F-P}{n }}{\frac{F+P}{2}}

Cuopon payment =1,000 x 4.5% = 45

Face value       = 1,000

Purchase value= 1,060

n= 20 years

quotient 4.0776699%

It will yield approximately 4.08%

3 0
2 years ago
Orange co. sells merchandise on credit to zea co. in the amount of $9,000. the invoice is dated on september 15 with terms of 1/
Juli2301 [7.4K]

I guess the correct answer is $90, September 30

Orange Co. sells merchandise on credit to Zea Co. in the amount of $9,000. The invoice is dated on September 15 with terms of 1/15, net 45. The amount of the discount is $90 and the date must the invoice be paid in order for the buyer to take advantage of the discount is September 30.

3 0
2 years ago
Equipment costing $37,200 is purchased at the beginning of the year for cash. Depreciation on the equipment is $6,200 per year.
mr Goodwill [35]

Answer:

$16000

Explanation:

3 0
2 years ago
Jordan, Inc., holds 75 percent of the outstanding stock of Paxson Corporation. Paxson currently owes Jordan $400,000 for invento
Marat540 [252]

Answer:

Because this is an inter-entity balance then the amount that should be eliminated of this debt is the letter D. all the $400,000.

Explanation:

Inter entity balance facilitates the management of allocations and transfers between entities. They provide a better control over transactions spanning multiple entities, other benefit is that the accuracy of the financial data improves and finally and this is why the anser is option D. is that it keeps each entity in balance

4 0
2 years ago
You’ve just joined the investment banking firm of Dewey, Cheatum, and Howe. They’ve offered you two different salary arrangement
Fed [463]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Option 1:

You can have $72,000 per year for the next two years

Option 2:

You can have $61,000 per year for the next two years, along with a $17,000 signing bonus today. The bonus is paid immediately, and the salary is paid in equal amounts at the end of each month.

The interest rate is 9 percent compounded monthly.

To calculate the present value, we need to use the following formula:

PV= FV/(1+i)^n

First, we need to calculate the final value on both options:

FV= PV*(1+i)^n

For each year

Option 1:

i= 0.09/12= 0.0075

n= 12

Year 1= 72,000*1.0075^24= 86,141.77

Year 2= 72,000*1.0075^12= 78,754.09

Total= 164,895.86

PV= 164,895.86/1.0075^24= 137,825.14

Option 2:

Year 1= 61,000*1.0075^24= 72,981.23

Year 2= 61,000*1.0075^12= 66,722.22

Total= 139,703.45

PV= 139,703.45/ 1.0075^24= 116,768.53 + 17,000= 133,768.53

Option 1 is more profitable.  

8 0
3 years ago
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