Hey, could u help me with this work please

Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine Corporation. Several fina

sattari [20]

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

6 0

3 years ago

Tresnan Brothers is expected to pay a $4.00 per share dividend at the end of the year (i.e., D1 = $4.00). The dividend is expect

leonid [27]

Answer:

$66.67

Explanation:

Using dividend growth model

P0 = $\frac{D1}{Ke-g}$

Where P0 = Current market price of share

D1 = Dividend at year end

Ke = Expected return

g = growth percentage

Since D1 has been provided we will take D1 else formula is D0 + g for calculating D1

Putting the values as provided we have

P0 = $\frac{4}{0.09-0.03}$

= $\frac{4}{0.06}$ = $66.67

4 0

3 years ago

Economic exposure, a category of foreign exchange risk, is distinct from transaction exposure, which is concerned with the effec

zhannawk [14.2K]

Answer; this is true

Because, Foreign exchange risk is divided into three main groups: transaction exposure, translation exposure, and economic exposure. Economic exposure is concerned with the long-run effect of changes in exchange rates on future prices, sales, and costs. This is distinct from transaction exposure, which is concerned with the effect of exchange rate changes on individual transactions, most of which are short-term affairs that will be executed within a few weeks or months

8 0

3 years ago

In credit terms of 3/15, n/45, the 3 represents the

Olin [163]

Answer:

The 3 represents the percentage of cash discount. It means the cardholder will receive a 3% discount if the bill is paid within 15 days from the billing date.

6 0

3 years ago

Krasel Corp. exchanges equipment in a transaction that has commercial substance. The original cost of the asset surrendered was

devlian [24]

Answer:

All options are applicable

Explanation:

Upon the exchange of the asset, the cost of the old asset needs to be removed from the asset account by crediting the old asset account with $90,000

On the other hand, the market value of the new asset needs to be debited to new asset account i.e$50,000 and also the accumulated depreciation must debited to accumulated depreciation account.

All in all, the difference between the credit and the debit entries is balancing credit as shown below

Dr New asset $50,000

Dr Accumulated depreciation $70,000

Cr Old asset $90,000

Cr gain on asset exchange(bal figure) $30,000

3 0

3 years ago

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Hey, could u help me with this work please​

Hey, could u help me with this work please