This is called s<span>ubstitution in production</span>
Answer:
a. In order to determine the present value of lease we can use the same APR as the car loan (7%). We can use the present value of an annuity formula:
PV = monthly payment x annuity factor
- monthly payment = $509
- PV annuity factor, 0.58333%, 48 periods = 41.76344
PV of the annuity = $509 x 41.76344 = $21,257.59
total present value of lease contract = $21,257.59 + $109 = $21,366.59
b. the present value of purchasing the car is $40,000 - $28,000/1.07⁴ = $40,000 - $21,361.07 = $18,638.93
c. the break even resale price = (sales price - PV of lease) x (1 + 7%/12)⁴⁸ = ($40,000 - $21,366.59) x (1 + 0.07/12)⁴⁸ = $18,633.41 x 1.32205 = $24,634.37
I would go with C)it's harder to get credit if you have filed bankruptcy
Answer:
$18,000
Explanation:
Given data for Taylor Company;
Salaries payable at the beginning of 2015 (end of 2014) = $18,000
Salary expense during the year (2015) = $50,000
Salaries paid during the year = $50,000
Salary payable at end of year (2015) = ?
Let the salary payable at end of year= S
Using the formula
Salaries payable at the beginning of the year + Salary expense during the year - Salaries paid = Salary payable at end of year
$18,000 + $50,000 - $50,000 =S
S = $18,000
Salaries payable as at December 31, 2015 is $18,000.
Explanation:
All good!! What about you.. friend?
