Answer and Explanation:
As per the data given in the question,
1)
Cash flow Amount PV Factor at 10% for 8 annual installments Present Value
Installments $4,000 5.3349 $21,339.60
Down Payment $27,000 1 $27,000
Value of equipment $48,339.60
Refer to the PVIFA factor
2)
Table or calculator function FVAD of $
1
Future value $570,000
n = 5
i = 7.00%
Divided it by FV factor 6.1533
Annual Deposit $92,633.22
Refer to the FVAD table
3)
Table or calculator function PVAD of $
1
Payment $137,000
n = 20
i = 10.00%
Multiplied by PV factor 9.36492
Liability $1,282,994.04
Refer to the PVAD table
To complete the above question, please see below:
Sub-Prime Loan Company is thinking of opening a new office, and the key data are shown below. The company owns the building that would be used, and it could sell it for $100,000 after taxes if it decides not to open the new office. The equipment for the project would be depreciated by the straight-line method over the project's 3-year life, after which it would be worth nothing and thus it would have a zero salvage value. No change in net operating working capital would be required, and revenues and other operating costs would be constant over the project's 3-year life. What is the project's NPV? (Hint: Cash flows are constant in Years 1-3.)
<span>WACC 10.0% </span>
<span>Opportunity cost $100,000 </span>
<span>Net equipment cost (depreciable basis) $65,000 </span>
<span>Straight-line depreciation rate for equipment 33.333% </span>
<span>Annual sales revenues $123,000 </span>
<span>Annual operating costs (excl. depreciation) $25,000 </span>
<span>Tax rate 35%
</span>
The answer is <span>12,271</span>
What indicates the maximum quantity of a product that may be brought into a country in a specific period is a quota.
<h3>What does quota mean?</h3>
A quota is the maximum monetary value of a good and service that can be imported into a country for a specific period.
The purpose of a quota is to restrict the amount of import into a country so as to boost local production of the good for which the quota is placed. Quotas also limit foreign competition.
To learn more about imports, please check: brainly.com/question/26497713
