User Account

All Pages

What is the total paid into the fund by ace machinery

Assignment Help Accounting Basics
Reference no: EM132699085

Ace Machinery wants to provide for replacement of equipment seven years from now, estimated to cost $60 000.00. To do so, the company sets up a sinking fund into which it will pay equal sums of money at the beginning of each of the next seven years. Interest paid by the fund is 4.5% compounded annually.

Question i. What is the size of the annual payment into the fund?

Question ii. What is the total paid into the fund by Ace Machinery?

Question iii. How much of the fund will be interest?

Reference no: EM132699085

Questions Cloud

Determining the cost of equity : Cost of equity (Ke) = 0.82% + [1.40 * (8.00% - 0.82%)] = 10.872% or =0.82%+(8-0.82%)*1.4=11.197?
What are the risks associated with the cases : Auditor conducts an audit of the client company which is a retail business to customer company. The client has a large number of transactions
How do provide balance of provision for sick leave account : How do provide the balance of the Provision for Sick Leave account in the financial statements of South Ltd for the year ended 30 June 2020.
Characteristics of good interviewers and disparate treatment : Compile two examples of the worst interviews you ever had.
What is the total paid into the fund by ace machinery : Ace Machinery wants to provide for replacement of equipment seven years from now, What is the total paid into the fund by Ace Machinery?
How might the bill impact your own nursing practice : Address how this bill might impact professional nursing practice standards if passed? If not passed? How might the bill impact your own nursing practice?
How much is the percentage tax on May : May 2 Purchase from a VAT supplier of goods to be sold, P50,000, VAT of P60,000, not included. How much is the percentage tax on May
How do construct an amortization schedule : Construct an amortization schedule. A debt of $5000 is amortized by making equal payments at the end of every 3 months for 2 years.
Disadvantages of tms in project management : He is encouraging you to use it. Explain to your sponsor the advantages and disadvantages of TMS in project management. Justify

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