Not use excel How much would the owner of a building be justified in paying for a security systemthat will save $1,000 a year in insurance premiums if the system has to be replacedevery 15 years and has a scrap value equal to 10% of its initial cost? Assume interestrate of 7% p.a.Write your answer in dollars to the nearest integer, e.g. $ 123

The amount payable to security system will be equal to the present value of annual savings plus…

Answered: How much would the owner of a building…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 13EA: Jullo Company is considering the purchase of a new bubble packaging machine. If the machine will...

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Your landscaping company can lease a truck for $9,000 a year (paid at year-end) for 7 years. It can instead buy the truck for $48,000. The truck will be valueless after 7 years. The interest rate your company can earn on its funds is 8%. a. What is the present value of the cost of leasing? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. Is it cheaper to buy or lease? c. What is the present value of the cost of leasing if the lease payments are an annuity due, so the first payment comes immediately? (Do not round intermediate calculations. Round your answer to 2 decimal places.) d. Is it now cheaper to buy or lease?
Your landscaping company can lease a truck for $8,400 a year (paid at year-end) for 7 years. It can instead buy the truck for $44,000. The truck will be valueless after 7 years. The interest rate your company can earn on its funds is 8%. a. What is the present value of the cost of leasing? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. Is it cheaper to buy or lease? c. What is the present value of the cost of leasing if the lease payments are an annuity due, so the first payment comes immediately? (Do not round intermediate calculations. Round your answer to 2 decimal places.) d. Is it now cheaper to buy or lease? Your landscaping company can lease a truck for $8,400 a year (paid at year-end) for 7 years. It can instead buy the truck for $44,000. The truck will be valueless after 7 years. The interest rate your company can earn on its funds is 8%. a. What is the present value of the cost of leasing? (Do not round intermediate calculations. Round…
If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%
Jullo Company is considering the purchase of a new bubble packaging machine. If the machine will provide $20,000 annual savings for 10 years and can be sold for $50,000 at the end of the period, what is the present value of the machine investment at a 9% interest rate with savings realized at year end?
If a copy center is considering the purchase of a new copy machine with an initial investment cost of $150,000 and the center expects an annual net cash flow of $20,000 per year, what is the payback period?
If you are saving the same amount each month in order to buy a new sports car when the new models are released, which of the following will help you determine the savings needed? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuity
Your landscaping company can lease a truck for $8,200 a year (paid at year-end) for 5 years. It can instead buy the truck for $35,000. The truck will be valueless after 5 years. The interest rate your company can earn on its funds is 6%. a. What is the present value of the cost of leasing? (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. Is it cheaper to buy or lease? c. What is the present value of the cost of leasing if the lease payments are an annuity due, so the first payment comes immediately? (Do not round intermediate calculations. Round your answer to 2 decimal places.) d. Is it now cheaper to buy or lease?
You have been promised that if you invest in Asset X you would receive an amount of $1 500 at the end of each year forever. If your required rate of return is 18%, would you purchase this asset if it costs $10 000? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). 10pt A BIUS Paragraph Arial O WORDS POWERED BY TIN A WhatsApp Image.jpeg E MBA661 Gendere.pdf Show all P Type here to search 25°C AQI 85 A@G O 4) 3:18 PM 9/7/2021 tSonicMaster F12 pause break prt sc sysrq delete home pgdn pgup 3 4. 6. backspace num Ik scr Ik E R. Y U [ home pgup H. K enter 4. C B shift& end 立 S'
You estimate that you can save $9,000 by selling your home yourself rather than using a real estate agent. What would be the future value of that amount if invested for five years at 6 percent? I need help to use appropriate factor(s) from the tables provided when it comes to rounding the time value factor to 3 decimal places and final answer to 2 decimal places. Future value= ???
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Need help calculating
Can somone people me solve this and explain too? Thank you

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