Pollution control equipment for a pulverized coal cyclone furnace is estimated to cost $190,000 two years from now and an additi
1 answer:
Answer: $250,096
Explanation:
To find out the amount that should be invested today, one should find the present values of both figures and add them up:
Interest rate should be periodically adjusted so: 8% / 2 = 4% per semi annum
No of periods should be adjusted as well.
Amount to be invested today:
= $250,096
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Answer:
correct option is $13,000
Explanation:
given data
leases office = $7,000 per month
Phoenix incurs = $65,000
yield benefits = 8 years
remaining on its lease = 5 years
solution
we know that The cost of leasehold improvement is depreciate whichever is less
(a) Remaining Lease Term
(b) estimated useful life of improvement
so Annual depreciation of Leasehold Improvement will be here
Annual depreciation of Leasehold Improvement =
Annual depreciation of Leasehold Improvement = $13,000
so correct option is $13,000
Answer:
Total interest earned on the original deposit=$403.593
Explanation:
Total Interest earned after 6 years using compound Interest:
Where:
PV is the deposit amount
i is the interest Rate
FV=$4561.593
Total Interest earned after 6 years=FV-PV
Total Interest earned after 6 years=$4561.593-$2,700
Total Interest earned after 6 years=$1861.593
Total Interest earned after 6 years using single Interest:
Total Interest=$2,700*0.06*9
Total Interest =$1458
Total interest earned on the original deposit=Total Interest earned after 6 years-Total Interest
Total interest earned on the original deposit=$1861.593-$1458
Total interest earned on the original deposit=$403.593
Answer:
As the first payment occurs on option 7 n interest rate higher enough can make the 50 dollars received first make the difference.
The switch produced at a rate of :
300%
Interest rate below this mark favor option 6
while higher than this favor option 7
Explanation:
Option 6
perpetuity of 100 discounted 1.5 year
perpetuity of 50 every 3 years discounted 3 years
as the payment are every three years we calcualte an equivalent rate:
Option 7
perpetuity of 50 discounted 1 year
perpetuity of 100 every 2 years discounted 2.5 years
equivalent biannual rate
having the formulas
we can do it on excel solver to look at which rate the switch produces