On January 2, 2016, DeSantis Company is comparing two alternatives for leasing a machine. Alternative A is a lease that requires 24 quarterly payments of $6,000 with the first payment due on March 31, 2016. Alternative B is a lease that requires five annual payments of $28,600 with the first payment due on December 31, 2016. Calculate the amount for each alternative, then determine which alternative should DeSantis choose if the appropriate discount rate is 8% compounded quarterly. Use Excel or a financial calculator for the computations. Round your answer to the nearest dollar. Alternative A: $Answer 0 Alternative B: $Answer 0
Need the formulas to find the answer and the answers (no note paper scribbles please)

Answers

Answer 1

Desantis should choose alternative b as it has the lower cost when considering the present value of the lease payments.

alternative a: $130,420

alternative b: $126,462

to find the amount for each alternative, we need to calculate the present value of the lease payments. the present value can be determined using the formula for the present value of an annuity:

pv = pmt x (1 - (1 + r)⁽⁻ⁿ⁾) / r

where:

pv = present value

pmt = periodic payment

r = interest rate per period

n = number of periods

for alternative a:

pmt = $6,000

r = 8% / 4 (quarterly compounding)

n = 24

using the formula, we can calculate the present value:

pv(a) = $6,000 x (1 - (1 + 0.02)⁽⁻²⁴⁾) / 0.02

     ≈ $130,420

for alternative b:

pmt = $28,600

r = 8% (annual compounding)

n = 5

using the formula, we can calculate the present value:

pv(b) = $28,600 x (1 - (1 + 0.08)⁽⁻⁵⁾) / 0.08

     ≈ $126,462

comparing the present values, we can see that alternative a has a lower present value ($130,420) compared to alternative b ($126,462). to provide further information regarding the calculation of the present values for alternatives a and b, let's delve into the formulas and steps involved.

for alternative a:

we are given that alternative a requires 24 quarterly payments of $6,000. the discount rate is 8% compounded quarterly. to calculate the present value (pv) of these cash flows, we use the formula:

pv = pmt x (1 - (1 + r)⁽⁻ⁿ⁾) / r

here, pmt represents the periodic payment, r is the interest rate per period, and n denotes the number of periods.

substituting the given values into the formula, we get:

pmt = $6,000

r = 8% / 4 = 2% (quarterly compounding rate)

n = 24

plugging in the values, we have:

pv(a) = $6,000 x (1 - (1 + 0.02)⁽⁻²⁴⁾) / 0.02

     ≈ $130,420

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Related Questions

When must the ownership of property be documented through a title?

a.When you own an asset outright.

b.When you own an asset with another person or persons.

c.When you own an asset that requires contractual payments.

d.Both when you own an asset with another person or persons and when you own an asset that requires contractual payments.

Answers

The ownership of property must be documented through a title when Both when you own an asset with another person or persons and when you own an asset that requires contractual payments. Correct option is D.

When you own an asset outright, such as a house or a car, you typically receive a title document that proves your ownership. This title serves as legal evidence of your ownership rights and establishes your authority over the property.

Similarly, when you co-own an asset with another person or persons, a title is required to establish the ownership rights of each party involved. The title document will specify the ownership percentages or terms of the co-ownership arrangement.

Furthermore, certain assets, such as real estate or vehicles, may require contractual payments, such as a mortgage or a loan agreement. In these cases, a title is necessary to document the ownership of the asset and to secure the rights of the lender until the contractual payments are fulfilled.

Having a title is crucial because it provides legal protection and clarity regarding ownership rights. It helps prevent disputes and ensures that individuals can prove their ownership of the property when necessary. Therefore, both co-ownership situations and assets requiring contractual payments necessitate the documentation of ownership through a title.

So, Correct option is D.

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on september 1, the company pays rent for 12 months in advance and debits an asset account. at year-end, the adjusting entry on the work sheet would

Answers

The business debits an asset account and pays the rent for a full year in advance on September 1. The adjustment would raise an expense account at year's end.

Is paying your rent in advance a benefit?

Prepaid rent is a term used to describe previously paid rent. The rent is paid in cash by the firm, but since the charge hasn't yet been incurred, the rent should be reported as prepaid. An asset that the company can use to reduce future rent costs is rent that has already been paid in advance.

How do final accounts treat payments for in advance rent?

The journal entry for money received in advance acknowledges the accounting principle of "Credit the rise in obligation." A few instances of income that is received in advance include commissions, rent, and other forms of income. The corporation is thought to be burdened by these advancements.

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Under the LIFO retail method, we determine that:__________.
a) a new layer of inventory has been added during the period if the ending inventory at retail is greater than the beginning inventory at cost.
b) the ending inventory at retail is greater than the beginning inventory at retail.
c) the ending inventory at retail is less than the beginning inventory at retail.

Answers

Answer: the ending inventory at retail is greater than the beginning inventory at retail

Explanation:

In the Last-In-First-Out(LIFO) method, it is assumed that the units that are sold are the ones that were recently bought.

Under the LIFO retail method, to determine a new layer at retail, the beginning inventory at the retail will have to be deducted from the ending inventory at retail.

This means that a new layer of inventory will be added when the ending inventory at retail is greater than the beginning inventory at retail.

the ranking of the size of tax revenues received by the federal government (from highest to lowest) would be corporate taxes, income taxes, and social security payroll taxes. true or false

Answers

False. The ranking of the size of tax revenues received by the federal government is income taxes, social security payroll taxes, and then corporate taxes.

Income taxes are the largest source of federal tax revenue, accounting for over half of all federal tax revenue. Social security payroll taxes, which fund social security and Medicare, are the second-largest source of federal tax revenue.

Corporate taxes are the smallest source of federal tax revenue, accounting for only about 7% of all federal tax revenue. While corporate tax rates are often a topic of debate and controversy, they make up a relatively small portion of the overall federal tax revenue.

Understanding the breakdown of federal tax revenue can help individuals and policymakers better understand the priorities and funding sources of the federal government.

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What principle does this demand curve demonstrate?
quantity demanded increases as prices decrease
quantity demanded increases as prices increase
prices decrease as quantity demanded decreases
prices remain the same as quantity demanded increases

Answers

Answer:

quantity demanded increases as prices decrease

Explanation:

Demand is the volume of a product that consumers are willing to buy at the market place at a given price over a given time. The demand curve is a graphical representation of the relationship between the demand and the product's price. It shows how quantity demanded increases as prices decrease. The demand curves illustrate the law of demand.

The demanded curve slope downwards with the prices plotted on the Y-axis while the quantity demanded is on the X-axis. Movement along the slope illustrates how quantities change at different prices.

Answer:

a

Explanation:

both mortgages and auto loans

A are riskier for lenders.
B are riskier for borrowers.
C require a down payment in general.
D require minimum payments.​

Answers

both mortgages and auto loans require minimum payments.

Answer:

C

Explanation:

require a down payment in general

What created the federal reserve banking system

Answers

Answer: woodrow willson

Explanation: i paid attention in class

How to study using a 450 pg online college textbook in which you are asked detailed questions and scenarios.. It's overwhelming.

Answers

Answer:

Explanation:

There are many things in life that will seem overwhelming due to the how large and complex all of the data may be. The best way to get through these moments is to divide the task into smaller parts and sit down and dedicate time to it. For such a textbook divide the total amount of pages and read a little bit at a time, take breaks, reflect on what you have read, answer practice questions, and continue to the next group of pages. You will see after getting started that it is not as overwhelming anymore.

True or​ False: Ignoring any​ "Other" operating income or operating​ expenses, EBIT can be found by subtracting SGA and Depreciation from the gross profit. True

Answers

Answer:

True

Explanation:

As we know that

Earning before interest & taxes (EBIT) = Gross Profit - SGA (Selling, General and Administrative Expense) - Depreciation Expense

So the given statement is true

Hence, the same would be considered and relevant too

If the objective of a test of details is to detect overstatements of sales, the auditor should trace transactions from the:
A. Cash receipts journal to the sales journal.
B. Sales journal to the cash receipts journal.
C. Source documents to the accounting records.
D. Accounting records to the source documents.

Answers

The answer is "d". The auditor should follow transactions from the accounting records (i.e., sales journal) to the source documents if the goal of a test of details is to identify overstatements of sales (existence assertion) (e.g., customer order, sales order, shipping documents, etc.).

A and C are incorrect choices. The allegation of completeness can be verified by following the trail from the supporting documents to the accounting records (all sales are properly included). The answer is not "b." The cash collected for the sale can only be determined by tracing from the sales diary to the cash receipts journal. Lack of a corresponding cash receipt may simply mean that the sale was performed on account.

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At a local grocery store, travis, the produce department manager, has eight direct reports in his department, while rayah, the meat department manager, oversees 12 employees. which of these statements about span of control is accurate?.

Answers

Rayan had more span of control than Travis.

What is span of control?

It helps to describe the channel of command in an organization.

It can also help to know how many individual works directly under a superior or head.

The number of people that are managed by a superior will determine his or her span of control.

Therefore, Rayan had more span of control than Travis

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Widget Works has a cost of equity of 17.1 percent. The market risk premium is 9.2 percent and the risk-free rate is 3.3 percent. The company is acquiring a competitor, which will increase the company's beta to 1.7. What effect, if any, will the acquisition have on the firm's cost of equity capital? Decrease of 2.62 percent Increase of 2.62 percent Increase of 1.84 percent No effect Decrease of 1.84 percent

Answers

The acquisition of the competitor will have an effect on the firm's cost of equity capital.

To determine the effect, we need to consider the relationship between beta and the cost of equity capital.

The cost of equity capital is determined using the Capital Asset Pricing Model (CAPM), which is given by the formula:

Cost of Equity = Risk-Free Rate + Beta * Market Risk Premium

Before the acquisition, the company's beta is not provided, so we need to calculate it based on the given information. Using the CAPM formula, we can calculate the initial beta as follows:

Cost of Equity = Risk-Free Rate + Beta * Market Risk Premium

17.1% = 3.3% + Beta * 9.2%

Beta = (17.1% - 3.3%) / 9.2%

Beta ≈ 1.74

After the acquisition, the company's beta will increase to 1.7. Comparing the initial beta of 1.74 with the post-acquisition beta of 1.7, we can see that the acquisition will have no effect on the firm's cost of equity capital. Therefore, the correct answer is "No effect."

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many companies state their brand promise directly in words, using a short phrase called what

Answers

Answer:Many companies state their brand promise directly in words, using a short phrase called what? A. A warranty B. A customer mindset C. A corporate image D. A tagline

✓ D.

Which of the following is an advantage of starting your own business?

Answers

Answer:

The most common reason people launch their own business is to be their own boss. Other benefits include flexibility, financial rewards, the opportunity to innovate, and a chance to impact your community. Still, there are serious risks to launching your own business, and you should carefully consider and plan before you take the leap.

Explanation:

all the following are the determinants of demand except ______. a. price b. income c. tastes and preferences d. expectations

Answers

All the following are the determinants of demand except The correct answer is d. expectations.

Price, income, and tastes/preferences are all determinants of demand. Changes in price directly affect the quantity demanded of a good or service, while changes in income and tastes/preferences can shift the entire demand curve.

Expectations, on the other hand, are not typically considered a determinant of demand. Expectations may influence consumer behavior and decision-making, but they do not directly determine the level of demand for a product.

Price: Changes in the price of a good or service directly impact the quantity demanded. As the price increases, the quantity demanded tends to decrease, and vice versa, assuming other factors remain constant.

Income: Changes in consumer income can affect the demand for goods and services. Normal goods are those for which demand increases as income rises, while inferior goods are those for which demand decreases as income rises.

Tastes and preferences: Consumer preferences and tastes play a significant role in determining demand. Changes in preferences, trends, or cultural factors can influence the demand for specific goods or services.

Expectations: Expectations about future prices, income, or other relevant factors can impact current demand. If consumers anticipate that prices will rise in the future, they may increase their current demand to take advantage of lower prices. Similarly, expectations of changes in income or other economic conditions can affect demand.

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what are some examples of fees that can be seen on a bank statement?

Answers

Many fees can be seen on a bank statement. Some of them include "Monthly Service Fees, Debit or ATM fees, etc."

Other types of fees that can be seen on the bank statement include the following:

Point of Sales fees (POS)

Annual fees

Check fees

Insufficient or Overdraft fees

Withdrawal fees

Stop payment fees

Over limit fees

Returned check fees

Third-party ATM fee, among others.

The purpose of a bank statement is to let the account owner knows what goes on in his accounts. It includes both the credit and debit fees.

Hence, in this case, it is concluded that several fees are recorded on the bank statements

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what are the main duties and responsibilities of a Hotel manager​

Answers

Answer:

Here are some:

recruiting, training and supervising staff.

managing budgets.

maintaining statistical and financial records.

planning maintenance work, events and room bookings.

handling customer complaints and queries.

promoting and marketing the business.

Hope it helps you pls mark me brain list.

Answer:

The main duties and responsibilities of the hotel manager are as below:

Explanation:

1) Recruiting, training, and supervising staff.

2) Managing budgets.

3) Maintaining statistical and financial records.

4) Planning maintenance work, events, and room bookings.

5)Handling customer complaints and queries.

6) Promoting and marketing the business.

according to sponsorship, based on a 2015 study, what percentage of the north american sponsorship market is sports?

Answers

According to sponsorship, based on a 2015 study, 70% of the North American sponsorship market is sports.

What is sponsorship?

Sponsorship refers to the monetary or in-kind support given by businesses to organizations, events, or causes. Businesses benefit from increased brand recognition, improved consumer perception, and increased sales when they sponsor something.The practice of sponsoring anything in exchange for something in return is known as sponsorship.

When one firm supports another, they typically do so to increase recognition, reputation, or influence. Companies can also sponsor events, which can help them attract new customers and boost their brand image.

What percentage of the North American sponsorship market is sports?

According to a 2015 report, sports events are the most popular sponsorship item, accounting for around 70% of the North American sponsorship market. Sports events are followed by entertainment and non-profit organizations, respectively, in terms of popularity.

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Which of these can you invest in without assuming any risk?

(1 point)

bonds

property

stocks

none

Answers

Answer:

none

Explanation:

correct

Given that number of daily purchases and if your average round-up was $0.50, how much would you end up investing...

Per day
Per month
Per year

Answers

Amount Invested per Day = (Number of Daily Purchases x $0.50)

Amount Invested per Month = (Number of Daily Purchases x $0.50) x 30

Amount Invested per Year = (Number of Daily Purchases x $0.50) x 365

What is an Investment?

An investment is known an asset or item acquired with the goal of generating income or appreciation. Investments are generally made to earn a return on the money or asset, increase one's wealth, or to generate a profit.

In order to calculate the amount invested per day, month and year when an average round-up of $0.50 is applied to the number of daily purchases, the following formula can be used:

Amount Invested/Day = (Number of Daily Purchases x $0.50)

Amount Invested/Month = (Number of Daily Purchases x $0.50) x 30

Amount Invested/Year = (Number of Daily Purchases x $0.50) x 365

For example, if one made 10 daily purchases, the amount invested would be calculated as follows:

Amount Invested/Day = (10 x $0.50) = $5

Amount Invested/Month = (10 x $0.50) x 30 = $150

Amount Invested /Year = (10 x $0.50) x 365 = $1,825

This formula can be used to calculate the amount invested for any given number of daily purchases and an average round-up of $0.50.

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Seattle Paint Company developed a new exterior house paint that can be properly applied even in the rain.How can this formula be protected without filing for a patent?a. Without a patent, no protection is available.b. If the company takes all reasonable steps to avoid discovery of the secret, it can be protected against some,but not all, methods of discovery of the secret.c. By putting a notice on the cans of paint that the formula is a protected trade secret.d. By registering a trademark for the product specifying that the product is distinctive.

Answers

Seattle Paint Company developed a new exterior house paint that can be properly applied even in the rain. this formula be protected without filing for a patent  Without a patent, no protection is available.

The paint industry, often referred to as the "paint and coatings industry," consists of manufacturers, wholesalers, and retailers that sell paints, stains, and other coatings. The term extends to anyone who manufactures or sells related items, often referred to as "miscellaneous goods," such as brushes, rollers, fall clothes, etc.

Paints and coatings manufacturing facilities preserve, protect, We manufacture decorative paints, inks, adhesives, and a variety of other specialty coatings. Activities such as mixing and washing operations can release pollutants into the air and pose health concerns for local communities.

Coating industry can be broadly divided into he two segments: industrial and decorative. Industrial coatings are for automotive original equipment manufacturers (OEMs), industrial and rail, and decorative coatings for the residential sector.

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Differentiate between the scheduling techniques known as CPM and PERT

Answers

PERT is for Program Evaluation and Review Technique, whereas CPM stands for Critical Path Method. PERT is used to manage unpredictable activities, whereas CPM is used to manage predictable ones. PERT is concerned with events, whereas CPM is concerned with activities.

Calculate the net present value of a bond paying $1000 one year from now with a 6% annual interest rate, paid semiannually.

Answers

To calculate the net present value of the bond, we first need to determine the present value of the $1000 payment that will be received one year from now.

Since the bond pays semiannually, we will receive two payments of $500 each at the end of each six-month period. Therefore, we need to calculate the present value of each of these payments and then add them together to get the total present value of the bond.

To calculate the present value of the first $500 payment, we can use the formula:

PV = FV / (1 + r/n)^(n*t)

where PV is the present value, FV is the future value, r is the annual interest rate, n is the number of compounding periods per year, and t is the time period in years.

In this case, FV = $500, r = 6% (or 0.06), n = 2 (since payments are made semiannually), and t = 0.5 (since the first payment is received in six months). Plugging in these values, we get:

PV1 = $500 / (1 + 0.06/2)^(2*0.5) = $471.78

Similarly, to calculate the present value of the second $500 payment, we use the same formula but with t = 1 (since the second payment is received in one year):

PV2 = $500 / (1 + 0.06/2)^(2*1) = $443.15

Adding these two present values together gives us the total present value of the bond:

PV = $471.78 + $443.15 = $914.93

Therefore, the net present value of the bond is $914.93. This means that if we were to purchase the bond for this amount today, we would receive the future payments of $1000 over the next year and earn a return of 6% per year.

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Why should you check the spelling by reading a document even if you used Writer's Spell Check feature? A. The Spell Check dictionary is usually out of date. B. Spell Check won't recognize mistakes you've made when you misspell a word in a way that makes another word. C. Spell Check only checks the first half of a document, so you have to check the rest yourself. D. The Spell Check suggestions are always wrong.

Answers

Answer:

B) Spell Check won't recognize mistakes you've made when you misspell a word in a way that makes another word.

Explanation:

What is a major goal of ecotourism

Answers

Answer:

One of the main goals of ecotourism is to increase the awareness tourists have about the social conditions surrounding a travel destination. Such conditions as poverty are often hidden from tourists. Ecotourism aims to expose tourists to the realities of social and economic climates in an area.

Hope this helped! Good luck!! :)

Explanation:

Answer:

a major goal is to create experiences that benefit everyone equally, not just the tourist and stakeholders.

*ECONOMICS* please help

*ECONOMICS* please help

Answers

THE. ANSWERRRR ISSSS BBB

The equation Assets = Liabilities + Owner's Equity is called the

The equation Assets = Liabilities + Owner's Equity is called the

Answers

Answer:

Accounting Equation

Explanation:

The accounting equation forms the basis of preparing a balance sheet and the double-entry accounting concept.

The accounting equation is presented as Assets = Liabilities + Shareholder’s Equity. The balance sheet presentation follows this concept. It is divided into three segments, assets, liabilities, and equity.

The double entry concepts will record entries affecting assets in the same manner. Those affecting liabilities and equity are recorded similarly. The entries of assets balance the entries of equity and liabilities.

Outline six uses of computer


.​

Answers

Home useIndustryMedical FieldEntertainmentEducationBankingBusinessGovernment

I have given many options

High school is referred to as _____ education.


fundamental

secondary

vocational

primary

Answers

Answer:

secondary

Explanation:

as 10 class is rrferred to as secondary education

plz folliw me

Answer: High school is referred to as secondary education. :)

What is a major function of the public sector

Answers

Answer:

Public sector provides many services such as; education, health and social care.

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