User Account

All Pages

Calculate the present value of plan a

Assignment Help Accounting Basics
Reference no: EM131059499

Axel needs new manufacturing equipment. Two companies can provide similar equipment but under different payment plans:

Plan A: MRE offers to let Axel pay $55,000 each year for five years. The payments include interest at 12% per year.

Plan B: Westernhome will let Axel make a single payment of $425,000 at the end of five years. This payment includes both principal and interest at 12%.

1. Calculate the present value of Plan A. (Show all work)

2. Calculate the present value of Plan B. (Show all work)

3. Axel will purchase the equipment that costs the least, as measured by present value. Which equipment should Axel select? Why?

Reference no: EM131059499

Questions Cloud

What are some of impacts that baldrige program has provided : Develop a cause-and-effect diagram that might clarify the source of errors. What tools might the supervisor use to study ways to reduce the number of errors? What are some of the impacts that the Baldrige program has provided, both in the U.S. and ar..
Whitman price consulting-mis and dss considerations : See the Web site for this book to read about the Whitmann Price Consulting case for this chapter. Following are questions concerning this Web case.
Angular speed of the earth about the sun : The earth orbits the sun at an orbital speed of about 30 km/s and is on average a distance of 1.50 x 10**8 km from the sun. What is the angular speed of the earth about the sun in units of degrees per day?
Write an essay on the charter of freedom in brazil : Write a comparison essay on "Gradual Abolition and the Dynamics of Slave Emancipation in Cuba, 1868-1686" by Rebecca J. Scvott and "The Charter of Freedom in Brazil" by Katia M. de Queeiros Mattoso.
Calculate the present value of plan a : Calculate the present value of Plan B. (Show all work) Axel will purchase the equipment that costs the least, as measured by present value. Which equipment should Axel select? Why?
How to implement an array : Describe an algorithm that, given n integers in the range 0 to k, preprocesses its input and then answers any query about how many of the n integers fall into a range [a,b] in O(1) time. Your algorithm should use Θ(n+k) preprocessing time. Provide..
Systems investigation and analysis considerations : See the Web site for this book to read about the Whitmann Price Consulting case for this chapter. Following are questions concerning this Web case.
Estimate the capital cost of this biorefinery : Biomass Processing Technology 2015-2016 Coursework. Estimate the capital cost of this biorefinery, by referring to the capital cost figures reported for relevant/similar processes given in the lectures of this module or in the open literature. Appl..
What is the total paid-in capital of the company : Is the preferred stock cumulative or noncumulative? How can you tell? What is the total paid-in capital of the company?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Zero-interest-bearing note to brown company

Samson Corporation issued a 4-year, $75,000, zero-interest-bearing note to Brown Company on January 1, 2014, and received cash of $47,664. The implicit interest rate is 12%. Prepare Samson's journal entries for (a) the January 1 issuance and (b) ..

  What is the maximum amount of these expenditures

What Is the maximum amount of these expenditures that Egret can deduct in 2011?

  On january 2 2010 a calendar-year corporation sold 8 bonds

on january 2 2010 a calendar-year corporation sold 8 bonds with a face value of 600000. mature in 5 years paid

  Ensor materials corporation approved a stock option plan

1.On October 15, 2012, the board of directors of Ensor Materials Corporation approved a stock option plan for key executives.

  Determining the investment in the partnership

Prepare the entry to record Nichols's investment in the partnership, assuming the equipment has a fair value of $4,000.

  If the airplane company wants to make a profit

If the airplane company wants to make a profit of $99 million annually, how many planes will it have to sell?

  Last year the house of orange had sales of 826650 net

last year the house of orange had sales of 826650 net operating income of 81000 and operating assets of 84000 at the

  Which of the following is a main accounting contribution to

which of the following is a major accounting contribution to the managerial decision-making process in evaluating

  On january 1 2012 chang corp had 502000 shares of common

on january 1 2012 chang corp. had 502000 shares of common stock outstanding. during 2012 it had the following

  E3-8 adjusting entries andy roddick is the new owner of ace

e3-8 adjusting entries andy roddick is the new owner of ace computer services. at the end of august 2014 his first

  Lanier company began operations on january 1 2010 and uses

lanier company began operations on january 1 2010 and uses the fifo method in costing its raw material inventory.

  Wly waste management wyly waste management wwm is an sec

wyly waste management. wyly waste management wwm is an sec registrant and your firm is its auditor. overall materiality

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd