Appropriate rate of interest

Assignment Help Accounting Basics

Reference no: EM13145522

Betta Company owns a plot of land on which buried toxic wastes have been discovered. Since it will require several years and a considerable sum of money before the property is fully detoxified and capable of generating revenues, Betta wishes to sell the land now. It has located two potential buyers: Buyer A, who is willing to pay $385,000 for the land now, and Buyer B, who is willing to make 10 annual payments of $60,000 each beginning at the end of the year. Assuming that the appropriate rate of interest is 9%, to whom should Betta sell the land? Show calculations.

Reference no: EM13145522

Questions Cloud

Writing article about crash diets : Writing Article about Crash diets in 800 words. at least 4 references should be used.

Compare and contrast the life cylces of bryophytes : compare and contrast the life cylces of bryophytes , seedless vascular plants and gymnosperms . How do any of the differences you mention affect the relative success of these different groups in dry environments ?

Efficient use of organisational operational precedures : Briefly describe the two types of strategies that companies may choose to persue. how can the efficient use of organisational operational precedures promote the effective implementation of company strategy?

Describe the growth of a highly branched large oak tree : Describe the growth of a highly branched, large oak tree from an embryo within an acorn. (Note that the cotyledons in an oak seedling remain belowground when an oak seedling germinates.)

Appropriate rate of interest : Assuming that the appropriate rate of interest is 9%, to whom should Betta sell the land? Show calculations.

Market for the brands product lines : Market for the brand's product lines/items in the UAE define the market, current size of the market, future size of the marke

What is effect of ommitting heating in acid-fast staining : What is the effect of varying the primary stain and counterstain in acid-fast staining?

Relevant to decesion about obsolete parts : The part would be sold for $7000 or modified for $10000 and sold for 20300. Which of data is relevant to the decesion about the obsolete parts?

Identify which checkpoint within eukaryotic cell cycle : despite occurring in a large volume of reaction space in the cytoplasm? What are the advantage(s) and disadvantage to this method of reaction organization?

User Account

All Pages