What would be the monthly payment

Assignment Help Financial Accounting
Reference no: EM132966138

Question - Suppose an H1200 supercomputer has a cost of $100,000 and will have a residual market value of $40,000 in 7 years. The? risk-free interest rate is 5.2% APR with monthly compounding.

a. What is the? risk-free monthly lease rate for a 7?-year lease in a perfect? market?

b. What would be the monthly payment for a 7?-year $100,000 ?risk-free loan to purchase the? H1200?

Reference no: EM132966138

Questions Cloud

Compute depreciation expense : The estimated salvage value is $5,400. Compute depreciation expense for both 2019 and 2020 under each of the following depreciation methods
Difference between dividends and free cash flows : Question - Explain the difference between dividends and free cash flows attributable to equity holders (FCFE)
How much would you charge for machine time : In "costing" this special job, how much would you charge for machine time if the machine is being fully utilized? Why
What percentage of the monthly payment will go : Your company has just taken out a 1-year installment loan for $72,500. What percentage of the 2nd monthly payment will go toward the repayment of principal
What would be the monthly payment : Suppose an H1200 supercomputer has a cost of $100,000 and will have a residual market value of $40,000 in 7 years. What would be the monthly payment
What are the cash flows related to the acquisition : Machine 1 has an initial cost of $100,000, costs $20,000 to set up and is expected to be sold for $20,000 after 10 years. What are the cash flows
Critically evaluate and discuss how the concepts of best fit : Critically evaluate and discuss how the concepts of ‘Best fit' or/and ‘best practice' could be applied to the strategic management of human resources
What is the total Shareholders Equity at Dec : On Dec 31, 2021.Marah sold 4,000 shares at Php 8 per share and retired the remaining treasury shares. What is the total Shareholders Equity at Dec 31, 2021
Determine the transaction price for this transaction : The bonus is reduced by $8000 each week that completion is delayed. Using the expected value approach, determine the transaction price for this transaction

Reviews

Write a Review

Financial Accounting Questions & Answers

  Prepare a tabular summary to record all transactions

Prepare a tabular summary to record all transactions described on the above dates. Update depreciation on assets disposed of, where applicable.

  Explain how is the presence of the other owners reflected

Explain how is the presence of the other owners reflected in consolidated financial statements, What accounting is appropriate for a noncontrolling interest?

  Tax deduction immediately upon payment

According to AASB 112, the prepayment of rent of $2,000 that is claimed as a tax deduction immediately upon payment (assuming an income tax rate of 30%) will give rise to:

  Find what the amount of net income for the year was

The total assets and the total liabilities of a business at the beginning and at the end of the year appear, What the amount of net income for the year was

  What is fair market value accounting

What Is Fair Market Value Accounting? How the FASB is going to standardize the calculation of financial instruments by looking at their historical cost?

  Do think that the cost of robot are mostly variable or fixed

Would the cost of full-time hourly employees behave mainly as a variable cost or a fixed cost? Does your answer change if you consider part-time hourly

  Give accounting equation for the above transactions of bbi

Give accounting equation for the above transactions of BBI for the year ended 31st December 2018

  What is the entry to record the expiration of stock rights

During the current year, the entity received 60,000 right to purchase one share at P80. What is the entry to record the expiration of stock rights

  Management discretion-earnings management

Management discretion, earnings management, and earnings manipulation: Are these ethical? Legal? DISCUSS how a decision can be considered a legitimate choice and how it can also be considered improper.

  I rarely see a real variable cost or a truly fixed cost

The controller of a privately held company stated, "I rarely see a real variable cost or a truly fixed cost." What did she mean? Include in your response an explanation of the difference in behavior of variable and fixed cost, including an example to..

  Calculate the PIR for both projects

Consider the following TWO 5-year projects with 8% cost of capital. PROJECT A Initial investment = 55,000. Calculate the PIR for both projects

  Calculate next period dividend per share using november

Calculate the price of AT&T according to the Dividend Discount Model assuming that the dividend payments of AT&T are a growing perpetuity.

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd