User Account

All Pages

Which equipment should axel select

Assignment Help Accounting Basics
Reference no: EM13993011

P10-A-9B-Calculating Present value

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 payment include interest at 12% per year.

Plan B: Western home 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%.

Requirements

1. Calculate the present value of Plan A.

2. Calculate the present value of Plan B.

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

Reference no: EM13993011

Questions Cloud

Which would be most effective blocker : If you had equal thicknesses of each substance, which would be most effective blocker? Which would be the least effective blocker?
What is the probability that at least one of them : The company president always invites one of the 5 vice presidents to attend games with him, and claims he selects the person to attend at random.
How far away from its entrance point does the particle exit : The particle exits the field traveling 180° to its original direction of motion. How far away from its entrance point does the particle exit the field?
Discuss ways you plan to apply procurement management : Discuss Ways you Plan to Apply Procurement Management - Submit a content discussion paper in which you specify that specifies how you intend to apply this newly gained knowledge in the field of project management
Which equipment should axel select : Axel will purchase the equipment that costs the least, as measured by present value. Which equipment should Axel select? Why?
Prepare journal entries to record transactions : Purchased raw materials at a cost of $45,000 and general factory supplies at a cost of $13,000 on account (recorded materials and supplies in the materials account).
What will the speed of the sled be when you reach the top : You are pulling your sister on a sled to the top of a 20.0 m high, frictionless hill with a 10.0o incline. Your sister and the sled have a total mass of 50.0 kg. You pull the sled, starting from rest, with a constant force of 127 N at an angle of 4..
What minimum rotation speed should you reach before dropping : You have been charged with operating "the gravitron" at the carnival. What minimum rotation speed should you reach before dropping the floor?
What is the energy of each photon : Pulsed dye lasers emit light of wavelength 585 nmin 0.450 ms pulses to remove skin blemishes such as birthmarks. The beam is usually focused onto a circular spot 5.00 mm in diameter. Suppose that the output of one such laser is 20.0 W . What is th..

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare entries necessary to classify the amounts into

cardinal paz corp. carries an account in its general ledger called investments which contained debits for investment

  Amount spent on acquisition of equipment

The equipment at cost account at the start of Year 2 records a total of £34m. The equipment at cost account at the end of Year 2 records a total of £37m. An asset of original cost £5m was sold during the period. What was the amount spent on acquis..

  Cherie is an accountant for a big advertising agency after

cherie is an accountant for a large advertising agency. after receiving notice of a prospective large account she

  Who are the stakeholders in this situation

This problem belongs to Accounting and it is about a scenario where a company's controller is weighing choices for allowing a costly product to be developed during financial crisis or to let an outside firm develop the technology and buy it from t..

  The charges to work in process-assembly department for a

the charges to work in process-assembly department for a period together with information concerning production are as

  Complete the cost schedule

Laser Tex Inc. manufactures low-end computer components within a relevant range of 100,000 to 140,000 disks per year.  Within this range, the following partially completed manufacturing cost schedule has been prepared: Complete the cost schedule

  At the beginning of 2011 robotics inc acquired a

at the beginning of 2011 robotics inc. acquired a manufacturing facility for 12 million. 9 million of the purchase

  What information should management disclose in the

drug benefits and post retirement liabilities delphi companyreduced its other post reitrement benefits by approx 500

  What was the number of equivalent units of production

If Department H had 600 units, 60% completed, in process at the beginning of the period, 8,000 units were completed during the period, and 500 units were 30% completed at the end of the period,

  Howle manufacturing company began operations on january1

howle manufacturing company began operations on january1. during the year it started and completed 1700 units of

  Advantages and disadvantages of using the internet

Describe the advantages and disadvantages of using the Internet to search for a job.

  Discuss the roles of law and courts in today

Write a 700- to 1,050-word paper in which you discuss the roles of law and courts in today's business environment.

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