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A firm is evaluating two machines. The first costs $250,000 and will require annual maintenance of $30,000 per year for 10 years. At the end of 10 years, the salvage value will be $75,000.
The second machine costs $400,000 and will require $225,000 at the end of the fifth year. The salvage value after 10 years will be $175,000. Which machine should the firm select if interest in 8.5% compounded annually?
Q. What is accrual basis of accounting? In the following illustration, notice that every business transaction affects two or more accounts in the ledger. As well note that
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RATIO ANALYSIS
show deeply
A vendor reduces an item listed at $140 on July 1st by 20%, and then reduces it another 25% on September 1st. What is the sale price of the good after the last reduction? A. $7
Q. Income statements - Service and merchandising company? We evaluate the main divisions of an income statement for a service company with those for a merchandising company. To
with help of illustrations,comment on final accounts
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