Present value with periodic rates. Sam Hinds, a local dentist, is going to remodel the dental reception area and add two new workstations. He has contacted A-Dec, and the new equipment andcabinetry will cost $15,000. The purchase will be financed with an interest rate of 8% loan over 9 years. What will Sam have to pay for this equipmentper year) and weekly payments (52 per year)? Compare the annual cash outflows of the two payments. Why does the weekly payment plan have less total cash outflow each year?if the loan calls for quarterlypayments (4What will Sam have to pay per period if the loan calls for quarterly payments (4 per year)?$1100.53 (Round to the nearest cent.)****

The periodic payment on the borrowed amount can be found by using the PMT function in the excel…

Present value with periodic rates. Sam Hinds, a local dentist, is going to remodel the dental reception area and add two new workstations. He has contacted A-Dec, and the new equipment and cabinetry will cost $15,000. The purchase will be financed with an interest rate of 8% loan over 9 years. What will Sam have to pay for this equipment if the loan calls for quarterly per year) and weekly payments (52 per year)? Compare the annual cash outflows of the two payments. Why does the weekly payment plan have less total cash outflow each year? payments (4 What will Sam have to pay per period if the loan calls for quarterly payments (4 per year)? $1100.53 (Round to the nearest cent.)

Present value with periodic rates. Sam Hinds, a local dentist, is going to remodel the dental reception area and add two new workstations. He has contacted A-Dec, and the new equipment and cabinetry will cost $15,000. The purchase will be financed with an interest rate of 8% loan over 9 years. What will Sam have to pay for this equipment if the loan calls for quarterly per year) and weekly payments (52 per year)? Compare the annual cash outflows of the two payments. Why does the weekly payment plan have less total cash outflow each year? payments (4 What will Sam have to pay per period if the loan calls for quarterly payments (4 per year)? $1100.53 (Round to the nearest cent.)

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 13EB: Conestoga Plumbing plans to invest in a new pump that is anticipated to provide annual savings for...

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Present value with periodic rates. Sam Hinds, a local dentist, is going to remodel the dental reception area and add two new workstations. He has contacted A-Dec, and the new equipment and cabinetry will cost $22,000. The purchase will be financed with an interest rate of 9.5% loan over 9 years. What will Sam have to pay for this equipment if the loan calls for quarterly payments (4 per year) and weekly payments (52 per year)? Compare the annual cash outflows of the two payments. Why does the weekly payment plan have less total cash outflow each year? What will Sam have to pay for this equipment if the loan calls for quarterly payments (4 per year)? $915.94 (Round to the nearest cent.) What will Sam have to pay for this equipment if the loan calls for weekly payments (52 per year)? 24 (Round to the nearest cent.)
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