User Account

All Pages

What amount will be assigned to the equipment

Assignment Help Accounting Basics
Reference no: EM132525259

Question - Cooper Company has purchased equipment that requires annual payments of $15,000 to be paid at the end of each of the next 6 years. The discount rate is 14%. The present value of $1 for six periods at 14% is 0.456. The present value of an ordinary annuity of $1 for six periods at 14% is 3.889. What amount will be assigned to the equipment at the purchase date?

A. $65,175

B. $58,335

C. $3,857

D. $6,840

Reference no: EM132525259

Questions Cloud

Compute for the annual cash return : XYZ company is planning to invest in machine worth P300,000 with a scrap value of P40,000 after 5 years. Compute for the annual cash return
How much will the project cost : The present value of P1 for one period at 12% is 0.893 and for two periods at 12% is 0.797. How much will the project cost
Explain five roles and responsibilities of audit committee : Give FIVE examples of how the Associated British Foods PLC has complied with the Code regarding the competence and independence of the audit committee
What was the taxable income : Debt service for the year was $171,948 of which $118,547 was interest payment. Annual depreciation was $40,000. What was the taxable income?
What amount will be assigned to the equipment : The present value of an ordinary annuity of $1 for six periods at 14% is 3.889. What amount will be assigned to the equipment at the purchase date
Determining the annual rate cap : Gilbert takes out a 23-year adjustable rate mortgage loan for $6,000,000 with monthly payments. The first two years of the loan have a "teaser
Determine What is the firms EPS : Yellow Iris Corp.'s net income last year was $263.06 million. The company has 45.96 million shares outstanding. What is the firm's EPS?
What is the monthly payment to be received : If the interest rate of the mortgage loan is 5.5%, what is the monthly payment to be received by Bob's mother-in-law?
What is the firm cash flow per share ratio : Serenade Corp.'s cash flow last year was $969.86 million. The company has 276.66 million shares outstanding. What is the firm's cash flow per share ratio?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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