Answer:
Annual depreciation (year 2)= $20,000
Explanation:
Giving the following information:
Purchase price= $115,000
Salvage value= $15,000
Useful life= 5 years
<u>To calculate the annual depreciation under the straight-line method, we need to use the following formula:</u>
<u></u>
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (115,000 - 15,000) / 5
Annual depreciation= $20,000
So they will want to buy them if someone sees a product they like and maybe feels a connection to buy it then they will buy it
Answer:
Price of the bond is $1,215.57
Explanation:
Price of the bond is actually the present value of all cash flows of the bond. Price of the bond is calculated by following formula:
Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
Price of the Bond = $110 x [ ( 1 - ( 1 + 7% )^-7 ) / 7% ] + [ $1,000 / ( 1 + 7% )^7 ]
Price of the Bond = $592.82 + $622.75
Price of the Bond = $1,215.57
