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

  Compute the break-even point in dollars under each of the

denny manufacturing had a bad year in 2012. for the first time in its history it operated at a loss. the companys

  What is terrys basis in her remaining preferred shares

How much income must Terry recognize when she receives the stock dividend and how much gain or loss must Terry recognize when she sells the preferred stock?

  Difference between debt ratio and insolvency

Difference between debt ratio and insolvency

  Assume that only 250 persons attended the extravaganza

dinner per person................................7favors and programs per

  Organizations use a variety of performance measures to

organizations use a variety of performance measures to evaluate managers. central to the idea ofresponsibility

  Prepare chocolatiers responsibility income statement

Prepare Chocolatiers5 responsibility income statement for the current month Report the responsibility margin for each product line and income from operations for the company as a w hole Also include columns showing all dollar amounts as percentage..

  Refer to the preston wade information above preston has

refer to the preston wade information above. preston has received a special order from a local plant nursery to

  Assume the company estimates bad debt using anging anlyasis

slider company sales its marchemdice only when crdiet. the following data is avalible in december 31 2014sales

  Should you create a policies and procedures manual for the

should you create a policies and procedures manual for the assistant managers and employees or should you just give

  Mikes employer reimburses him for the business-related

in the current year mikes agi is 50000. mike has no miscellaneous itemized deductions other than the employment-related

  Johnston inc engaged in the following transactions

johnston inc. engaged in the following transactions involving treasury stock feb. 10 - purchased for cash 17000 shares

  How could such an action be prevented in the future

Was this action ethical? Why or why not? How could such an action be prevented in the future?

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