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yawa3891 [41]
2 years ago
5

Suddeth Corporation has entered into a 6 year lease for a building it will use as a warehouse. The annual payment under the leas

e will be $2,468. The first payment will be at the end of the current year and all subsequent payments will be made at year-ends. If the discount rate is 5%, the present value of the lease payments is closest to (Ignore income taxes.):
See separate handout to determine the appropriate discount factor(s) using table.

A) $12,528

B) $14,103

C) $14,808

D) $11,050
Business
1 answer:
pychu [463]2 years ago
5 0
The answer is B because if you times 2468 by 6 and you take away the 5% of discount you get ur answer
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Answer:

$2,668.67

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

Cash flow in year 0 =  $-28,000

Cash flow in year 1 =  $12,000

Cash flow in year 2 =  $13,000

Cash flow in year 3 =  $12,000

I = 10%

NPV = $2,668.67

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

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3 years ago
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5 0
2 years ago
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natta225 [31]

Answer:

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The current ratio will remain the same as 1 only

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1 year ago
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<span>Michael mixed three colors of paint and came up with black. this is an example of subtractive color mixing. When you mix together subtractive colors eventually the light is subtracted from them giving off a black color tone. These colors change with the light but can cancel each other out easily. </span>

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