Sage Hill Inc. wishes to lease machinery to Thiensville Company. Thiensville wants the machinery for 4 years, although it has a useful life of 10 years. The machinery has a fair value at the commencement of the lease of $47,000, and Sage Hill expects the machinery to have a residual value at the end of the lease term of $27,000. However, Thiensville does not guarantee any part of the residual value. Thiensville does expect that the residual value will be $45,000 instead of $27,000.

Required:
What would be the amount of the annual rental payments Sage Hill demands of Thiensville, assuming each payment will be made at the end of each year and Sage Hill wishes to earn a rate of return on the lease of 6%?

Answers

Answer 1

Answer:

bud im sorry but cay you simplify this sentance

Explanation:

$29198 / [ 1 - ( 1 + 0.06 )-4 / 0.06 ]

= $29198 / 3.46510561283

= $8426 [ Rounded off to zero decimal places ]

bud i tried but i think its wrong im only in 6th


Related Questions

On April 1, 2015, the City of Southern Ponds issued $3,500,000 in 4% general obligation, tax supported bonds at 101 for the purpose of constructing a new police station. The premium was transferred to a debt service fund. A total of $3,490,000 was used to construct the police station, which was completed before December 31, 2015, the end of the fiscal year. The
remaining funds were transferred to the debt service fund. The bonds were dated April 1, 2015, and paid interest on October 1 and April 1. The first of 20 equal annual principal payments of $175,000 is due April 1, 2016.
What amount would be reported as debt service expenditures for 2015?
A) $ -0-
B) $ 70,000.
C) $140,000.
D) $245,000.

Answers

Answer:

B) $ 70,000.

Explanation:

Debt service expense

Debt service expense is the interest expense incurred to avail the debt services from another entity.

Debt service expense can be calculated using the following formula

Debt service expense = Face value of Bonds x Interest rate x Semiannual fraction

Where

Face value of bonds = $3,500,000

Interest rate  = 4%

Semiannual fraction = 6 / 12 = 1/ 2

placing values in the formula

Debt service expense = $3,500,000 x 4% x 1/2

Debt service expense = $70,000

Practice Drawing Timelines!
Purpose: This section describes how to draw a timeline and visualizing the problem being presented. It is important because a time problem that is set up incorrectly will lead to incorrect answers. For each of the descriptions below, draw the timeline on your own.
Inserted a picture of your timeline (the picture can be a jpeg or pasted in a word document).
Criteria: Full points will be based three separate timelines attached as a picture. Your work should be original and not copied, borrowed, or obtained from another student (this would be cheating as defined by Texas Tech University and stated in the syllabus).
Consider an asset that generates $3,000 in 5 years and $5,000 in 1 year; discount rate - 6% (These are uneven cash flows- there is no pattern).
2. Consider an asset that pays $500 per year for 8 years (This is an annuity- it is the same cash flow, evenly spaced, for a finite time (it has an end)).
3. Consider an asset that pays $50 per year starting at the end of year 3 (This is a delayed perpetuity- it is the same cash flow evenly spaced forever, but does not begin until a future date).

Answers

Answer:

1. Since the last cash flow occurs at year 5, the timeline ends at 5th year.

2. Since the same cash flow for a finite time of 8 years, the timeline ends at 8th year.

3. The 3 dots at the end of the timeline indicates a perpetuity.

Explanation:

A timeline refers to a line that shows the timing and amount of cash flows. Therefore, we have:

1. Consider an asset that generates $3,000 in 5 years and $5,000 in 1 year; discount rate - 6% (These are uneven cash flows- there is no pattern).

Note: See number 1 in the attached photo for the timeline.

The fact that the last cash flow occurs at year 5 makes the timeline to end at 5th year.

It can also be seen in the timeline that the 6% discount rate is shown in between the previous period and the next.

2. Consider an asset that pays $500 per year for 8 years (This is an annuity- it is the same cash flow, evenly spaced, for a finite time (it has an end)).

Note: See number 2 in the attached photo for the timeline.

The fact that the same cash flow for a finite time of 8 years makes the timeline to end at 8th year.

3. Consider an asset that pays $50 per year starting at the end of year 3 (This is a delayed perpetuity- it is the same cash flow evenly spaced forever, but does not begin until a future date).

Note: See number 3 in the attached photo for the timeline.

It should be noted the 3 dots at the end of the time line indicates a perpetuity.

Sunland Company uses a perpetual inventory system. Its beginning inventory consists of 83 units that cost $56 each. During June, (1) the company purchased 248 units at $56 each on account, (2) returned 10 units for credit, and (3) sold 206 units at $83 each on account. Journalize the June transactions. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Answers

Answer:

Item 1

Debit : Merchandise $13,888

Credit : Accounts Payable $13,888

Item 2

Debit : Merchandise $560

Credit : Accounts Payable $560

Item 3

Debit : Accounts Receivable  $17,098

Debit : Cost of Sales  $11,536

Credit : Sales Revenue $17,098

Credit : Merchandise $11,536

Explanation:

See the journal entries prepared above.

Shmenson Company uses the periodic inventory system. Sales for 2020 were $470,000 while operating expenses were $175,000. Beginning and ending inventories for 2020 were $70,000 and $60,000, respectively. Net purchases were $180,000 while freight in was $15,000. The net income or loss for 2020 was:

Answers

Answer:

The net income  for 2020 was $90,000

Explanation:

Shmenson Company

Income Statement for the year ended 2020

Sales                                                                             $470,000

Less Cost of Sales

Beginning Inventories                           $70,000

Add Net purchases                              $180,000

Add Freight In                                         $15,000

Less Ending Inventories                      ($60,000)     ($205,000)

Gross Profit                                                                  $265,000

Less Expenses

Operating expenses                                                   ($175,000)

Net Income                                                                    $90,000

Conclusion

Thus, the net income  for 2020 was $90,000.

Marketing managers from two companies agree that competing to offer the lowest prices has been hurting their profit margins, so they agree on the prices they will charge for some of their key products. What illegal pricing behavior is this? O A. Price discrimination O B. Deceptive pricing C. Price fixing O D. Price gouging​

Answers

Price fixing is the  illegal pricing behaviour is this. Hence, option C is correct.

What is Price fixing?

A written, verbal, or conduct-based agreement to raise, lower, maintain, or stabilize prices or price levels is known as price fixing. Antitrust laws typically mandate that each business establish prices and other competitive terms independently, without consulting a rival.

Competitors who agree to raise, cut, or stable prices are said to have engaged in horizontal price fixing. For instance, a horizontal agreement between two rival fast-food establishments selling hamburgers on the sale pricing of cheeseburgers is prohibited by antitrust rules.

Price fixing is an anticompetitive agreement between players on the same side of a market to buy or sell a good, service, or commodity solely at a set price, or to keep the market's dynamics in such a way that the price is kept at a fixed level.

Thus, option C is correct.

For more information about Price fixing, click here:

https://brainly.com/question/17204814

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Answer:

price fixing

Explanation:

What is the largest concern regarding the
'educate' and 'support' steps in the
process of implementing change?
A. Time
B. Expense
C. Difficulty

Answers

B thank me later :) give me hearts

A marketer of automobiles wants to introduce a new model using a message
that combines visuals, music, words, and action. Which category of
advertising media will best meet this marketer's goals?
A. Magazines
B. Television
C. Radio
D. Outdoor

Answers

Answer: Television!

Explanation:

Radio, Magazine, and Outdoor don't all have the combined visuals, music, words, and action that television has.

Television as the advertising media will best meet the automobile marketer's goals. Thus, the correct answer is option B.

What is advertising media?

The term "advertising media" describes a range of mainstream or alternative media platforms via which companies can market their goods, services, or brand. Knowing which advertising media channels are advantageous for your business can be vital in staying ahead of the competition because it is hard for every customer to be aware of every brand's offerings. Marketers can interact with various audiences in unique ways by utilizing the correct kind of advertising media.

Audio and visual are combined in television. This produces a multi-sensory advertising experience that demonstrates to consumers the worth of your goods. The touchpoint occurs in the viewer's house when an advertisement is shown on television. It becomes a more intimate medium as a result. A excellent technique to build a personal relationship with a viewer is through television.

Therefore, Radio, Magazine, and Outdoor as the media for advertising don't have the combined visuals, music, words, and action that television has.

To learn more about advertising media, click here:

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A call option on MassComputer Corp. is trading with a strike price of $100 and an expiration date on November 18th at 4 pm in the afternoon. The premium paid on the call is $5.05. What is the net profit or loss from buying the call just prior to 4 pm on November 18 if at this time the stock price per share of MassComputer is: a.$102.32 Answer:The net profit is $ -2.73 b.$97.62 Answer:The net profit is $ -7.43

Answers

Answer and Explanation:

The computation is shown below:

In the case when the stock price is $102.32

So, the net profit is

= $102.32 - $100 - $5.05

= -$2.73

In the case when the stock price is $97.62 is

= $97.62 - $100 - $5.05

= -$7.43

Hence, the same would be considered and relevant too

What is the Best loan option for your
lemonade Stand? Why?

Answers

Answer:

Short term loan

Explanation:

Lemonade stand can be regarded as a small business, Hence, the loan that suit the business is " Short term loan".

Short term loan can be regarded as loan that can be obtained to give support to ones personal as well as business capital. It is designed for the needs of small business capital with less interest compare to long term loan. The period of payment is usually within a year. It is of low risk and good profit.

What effect will each of the following have on the demand for small automobiles such as the Mini-Cooper and Fiat 500? a. Small automobiles become more fashionable: No change . b. The price of large automobiles rises (with the price of small autos remaining the same): (Click to select) . c. Income declines and small autos are an inferior good: (Click to select) . d. Consumers anticipate that the price of small autos will greatly come down in the near future: (Click to select) . e. The price of gasoline substantially drops: (Click to select) .

Answers

Answer:

a. Small automobiles become more fashionable:  

demand curve will shift to the right, increasing total quantity demanded and prices

b. The price of large automobiles rises (with the price of small autos remaining the same):

demand curve will shift to the right, increasing total quantity demanded and prices

c. Income declines and small autos are an inferior good:

demand curve will shift to the right, increasing total quantity demanded and prices

d. Consumers anticipate that the price of small autos will greatly come down in the near future:

demand curve will shift to the left, decreasing total quantity demanded and prices

e. The price of gasoline substantially drops:

demand curve will shift to the left, decreasing total quantity demanded and prices

On December 1, Year 1, Bradley Corporation incurs a 15-year $200,000 mortgage liability in conjunction with the acquisition of an office building. This mortgage is payable in monthly installments of $2,400, which include interest computed at the rate of 12% per year. The first monthly payment is made on December 31, Year 1.

How much of the first payment made on December 31, Year 1, represents interest expense?
a 2400
b 400
c 2304
d 2000

Answers

Answer:

d 2000

Explanation:

The computation of the interest payment made is shown below:

Interest expense  is

= Mortgage liability × rate of interest × given months ÷ total months

= ($200,000 × 12%) × 1 ÷ 12

= $24,000 × 1 ÷ 12

= $2,000

Hence, the correct option is d.

Europa Company manufactures only one product. Presented below is direct labor information for November. Standard direct labor hours per unit of product 3.20 Number of finished units produced 6,500 Standard wage rate per direct labor hour (SP) $ 19.20 Total direct labor payroll for the period $ 359,424 Actual wage rate per direct labor hour worked (AP) $ 16.00 The actual direct labor hours worked (AQ) during November (rounded to the nearest whole number) was:

Answers

Answer:

22,464 hours

Explanation:

Calculation to determine The actual direct labor hours worked (AQ) during November

Using this formula

Actual direct labor hours worked (AQ) = Total labor cost ÷ Actual wage rate

Let plug in the formula

Actual direct labor hours worked (AQ) = $359,424 ÷ 16

Actual direct labor hours worked (AQ) = 22,464 hours

Therefore The actual direct labor hours worked (AQ) during November will be 22,464 hours

Max, Inc., has two divisions, South Division and North Division. South Division's sales, contribution margin ratio, and traceable fixed expenses are $500,000, 60%, and $100,000, respectively. What is the segment margin for the South Division

Answers

Answer:

$200,000

Explanation:

Segment Margin is Profit wholly controlled by a specific division. Now, this excludes shared costs from the central Head Office.

The segment margin for the South Division is calculated as follows :

Sales                                                             $500,000

Less Variable Costs (40% x $500,000)    ($200,000)

Contribution (60% x $500,000)                 $300,000

Less Traceable Fixed Expenses                ($100,000)

Segment Margin                                          $200,000

Conclusion

The segment margin for the South Division is $200,000

Identify some of the gains that labor unions have made in the United States. What gain do you think is the most important? Why? 15 points

Answers

Answer:

Unions have achieved many of their goals for improving working conditions in the United States. Workers in the United States today enjoy higher wages, safer work environments, and shorter work days than workers in previous years. Workers today also have paid vacations and fringe benefits. Also, because of labor unions, the collective bargaining process has helped define acceptable actions for labor and management. (Students should state which of the above listed achievements they consider to be the most important and why.)

Explanation:

hope this helps :)

Answer:

he is correct it is...

Explanation:

"Unions have achieved many of their goals for improving working conditions in the United States. Workers in the United States today enjoy higher wages, safer work environments, and shorter work days than workers in previous years. Workers today also have paid vacations and fringe benefits. Also, because of labor unions, the collective bargaining process has helped define acceptable actions for labor and management. (Students should state which of the above listed achievements they consider to be the most important and why.)"

what is a savings and loans bank? advantages and disadvantages.​

Answers

Three advantages of savings accounts are the potential to earn interest, it's easy to open and access, and FDIC insurance and security. Three disadvantages of savings accounts are minimum balance requirements, lower interest rates than other accounts/investments, and federal limits on saving withdrawal.

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