Answer:
Leasing.
Explanation:
Find the present value of each and compare and choose the one with the lowest cost in present value terms.
<u>LEASE;</u>
Payments are in form of an annuity ;done using financial calculator (TI BA II plus)
PMT = -30,000
N ;duration = 4
I/Y = 10%
FV = 0
then CPT PV = -$95,095.96
<u>BUY</u>
Initial cost; (already in present value terms) = -$80,000
Annual maintenance(is an annuity); done using financial calculator (TI BA II plus)
PMT = -10,000
N ;duration = 4
I/Y = 10%
FV = 0
then CPT PV = -$31,698.65
Add PV of salvage value;
PV = FV/ (1+r)^4
PV = 20,000 /(1.10^4)
= 20,000/ 1.4641
= $13,660.26911
Overall PV of BUYING = (-80,000 -31,698.65 + 13,660.26911) = -$98,038.38
Therefore, leasing is a better option since the overall present value of costs is lower at $95,095.96 compared to that of buying at 98,038.38.
In order to have competition in a market economy, there must be at least 2 or more sellers acting independently in a particular market.
<h3>What is
competition in a market economy?</h3>
competition in a market economy serves as one that allows multiple individuals as well as businesses to use resources efficiently as well as producing the cheapest products without compromising quality.
It should be noted that In order to have competition in a market economy, there must be at least 2 or more sellers acting independently in a particular market.
Learn more about competition at:
brainly.com/question/9698922
#SPJ1
Answer:
See explanation section
Explanation:
Requirement A
Insto Photo Company
Journal Entries
Date Accounts Name Debit Credit
December 1, 2016 Inventory $25,000
Notes payable $25,000
<em>Note</em>: As the merchandise company issued a note for the credit purchase of merchandise inventory, notes payable is used instead of accounts payable.
Dec. 31, 2016 Interest expense $250
Interest payable $250
<em>Note: </em>Adjusting entry is needed as the fiscal year is ended on 31st December, therefore, there will be an accrued interest expense to be paid for one month. The calculation of interest expense = $25,000 × 12% × (30 ÷ 360) [assuming 1 year = 360 days, 1 month = 30 days]. = $250 for one month's accrual.
Requirement B
March 31, 2017 Interest expense $ 750
Interest payable $ 250
Notes payable $25,000
Cash $26,000
<em>Note:</em> At the end of the maturity date, the buyer will pay all the bills of the notes plus interest. Interest payable becomes debit as it did not pay by the buyer on 31st December, 2016. The remaining interest = $25,000 × 12% × (90 ÷ 360) = $750. Total cash will be paid after the maturity = $25,000 + $250 + $750 = $26,000.
Answer: $45,000
Explanation:
Given that,
Accounts receivable = $ 5,000
Sales revenue = $75,000
Cash = $15,000
Salaries and wages expense = $20,000
Rent expense = $10,000
Net income = Sales revenue - Salaries and wages expense - Rent expense
= $75,000 - $20,000 - $10,000
= $45,000
Answer:
He earns $296780 as a Sales Trainee and $377094 as a Sales Associate
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Explanation:
Given
Let x represents his sales as a sales trainee
Let x represents his sales as a sales associate
Total Sales: 
Total Commission: 
Required
Find x and y
Equations
--- (1)
--- (2)
Make y the subject of formula in (1)
Substitute this in (2)
Open Bracket
Collect Like Terms
Divide through by -0.03
Recall that
<em>Hence;</em>
<em>He earns $296780 as a Sales Trainee and $377094 as a Sales Associate</em>
