Schaad corporation has entered into an eight-year lease for a piece of equipment. the annual payment under the lease will be $2,500, with payments being made at the beginning of each year. if the discount rate is 14%, what’s the present value of the lease payments? ignore income taxes in this problem.

Answers

Answer 1

If the discount rate of the eight-year lease for a piece of equipment entered by Schaad Corporation is 14% with an annual lease payment of $2,500, the present value of the lease payments is $13,220.76.

How is the present value of lease payments determined?

The present value (PV) of lease payments can be determined by computing the discount factor of 14% for 8 years and multiplying it with the annual lease payment.

The present value can also be computed using the PV table or the PV formula.

However, for this exercise, we have used an online finance calculator to determine the PV as follows:

Data and Calculations:

N (# of periods) = 8 years

I/Y (Interest per year) = 14%

PMT (Periodic Payment) = $2,500

FV (Future Value) = $0

Results:

PV = $13,220.76

Sum of all periodic payments = $20,000 ($2,500 x 8)

Total Interest = $6,779.24

Thus, if the discount rate of the eight-year lease for a piece of equipment entered by Schaad Corporation is 14% with an annual lease payment of $2,500, the present value of the lease payments is $13,220.76.

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Related Questions

The federal funds rate is typically ________ the primary credit lending rate. a. greater than b. equal to c. less than d. None of these choices are correct.

Answers

The federal funds rate is typically equal the primary credit lending rate.

What is federal funds rate?

Federal funds rate are rate given by the government over credits or loans.

The rate is which commercial banks borrow and lend money and it is often lower than private Organization.

Therefore, the federal funds rate is typically equal than the primary credit lending rate.

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A government institutes new measures in an attempt to limit inflation. To what macroeconomic goal is this action most directly related

Answers

When the government institutes new measures in an attempt to limit inflation, the macroeconomic goal it is directly related to is C. Stable Prices.

What is a macroeconomic goal?

A macroeconomic goal is an achievement that an economy attains in order to maximize the standard of living of the people and achieve stable economic growth.

There are four macroeconomic goals, including:

Economic Growth Economic Stability Full employment Stable financial market.

The macroeconomic goals are supported by the following objectives:

Minimizing unemploymentIncreasing productivityControlling inflation.

Answer Options:

A. Equity

B. Efficiency

C. Stable Prices

D. Full Employment

Thus, when the government institutes new measures in an attempt to limit inflation, the macroeconomic goal it is directly related to is C. Stable Prices.

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________ are amounts owed to suppliers for products or services purchased on credit.

Answers

*Accounts payable* are amounts owed to suppliers for products or services purchased on credit

Select the education or qualification best demonstrated in each example.


Sadiq carefully prepares legal documents without making any mistakes.


To become a Lawyer, Kathleen earns a bachelor’s degree, then a three-year law degree.


Alice is a Judge who analyzes the evidence in a court case.


Travis is a Paralegal who gathers information for a Lawyer

Answers

Answer:

1. attention to detail

2. Juris Doctor degree

3. critical-thinking skills

4. research skills

Hope you have a good day ^w^

Answer:

The Answer is Below:

Explanation:

What type of account is sales returns and allowances?.

Answers

Answer:

contra revenue account

Which product most likely has a demand that is inelastic?.

Answers

Answer:  utilities, prescription drugs, and tobacco products

Explanation: necessities and medical treatments tend to be inelastic

CAN SOMEONE WITH SOME BUSINESS KNOWLEDGE HELP ME PLEASE!

The main business functions and their roles.

Review questions

1. Which business function is concerned with ensuring that products are produced to meet the quality standards expected by customers?

2. Name the business function involved in developing and selling products that meet customer needs.

3. Which sector is involved in making sure that the company has the employees it needs to run its operations?

4. Which business function is responsible for ensuring that the company has the funds it needs to carry out its operations?

5. Which business department is responsible for ensuring that employees are adequately compensated (salary-wage)?

6. Name the business function that must ensure that the correct quantity of a good or service is produced.

7. Which sector is responsible for researching and determining the wants and needs of different groups of consumers?

8. The management of the company wants to provide an extra benefit to its employees, other than a salary increase, for example, offering cafeteria and/or cafeteria service. What type of information should be consulted with each sector (HR, OPERATIONS, FINANCE AND MARKETING)?

THANK YOU FOR AT LEAST READING IT

Answers

Answer:

marketing is the business functions involved in developing and selling products that meet customer's need.

A strategy of ________ will be most beneficial for a firm to enhance its overall corporate performance.

Answers

Answer:

A strategy of related-linked diversification will be most beneficial for a firm to enhance its overall corporate performance.

Suppose that monetary neutrality and the fisher effect both hold. An increase in the money supply growth rate increases.

Answers

Any increase in the money supply growth rate will increase the inflation rate and nominal interest rates if the monetary neutrality and the fisher effect both on hold.

What is monetary neutrality?

The theory holds that the changes in the money supply only affect the general prices, but not overall economic productivity.

What is the fisher effect?

The effect explains the relationship between inflation and real & nominal interest rates.

In conclusion, if the monetary neutrality and the fisher effect both hold, then, any increase in the money supply growth rate will increase the inflation rate and nominal interest rates

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The three common types of checking accounts are basic, interest-bearing, and lifeline?
True
False

Answers

Answer:

True

Explanation:

Quizlet: Name three common types of checking account? basic checking account, interest-banking checking account, and Lifeline checking accounts.

Your annual budget to hire a social media team is $620,000. If each member on the team is paid $18/an hour and works a total of 2,040 hours per year, how many members can you hire for the team?

Answers

The number of team members you can hire based on your annual budget of $620,000 for the social media team is 16.

What is budgeting?

Budgeting is the process of making a financial estimate of expected revenue and expenditure for a period.

Budgeting ensures that sufficient funds are made available and spending does not exceed the budgeted amount.

Data and Calculations:

Annual budget for media team = $620,000

Member's rate per hour = $18

Total hours worked per year by a member = 2,040

A member's earnings per year = $36,720 ($18 x 2,040)

The number of team members to hire =16.9 ($620,000/$36,720)

Thus, the number of team members to hire for the social media team is 16.

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According to the cross-price elasticity of demand, when the price of DVD players drops, the demand for DVDs is likely to

Answers

Answer:increase

Explanation:

Maxine views her company as a grouping of departments that must work together and as a single entity that has customers, suppliers, and competitors. Maxine is utilizing: _____________


a. Total quality management.

b. A quantitative viewpoint.

c. Qualitative management.

d. A systems viewpoint

Answers

Maxine is utilizing a system's viewpoint when she views the company as a single entity.

What is System's viewpoint?

This is defined as an open social systems that must interact with their environments in order to survive.

Maxine viewing the company as grouping of departments that must work together and as a single entity  depicts system's viewpoint which was why option D was chosen as the most appropriate choice.

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PLEASE HELPP!!!
upload your table, and explain if you believe all businesses should have the same promotional strategies. Why or why not?

Answers

Answer:

No they should not all have the same promotional strategies. Some businesses have different goals, and different strategies can serve different goals. Different goals could be spreading awareness/widening shopper demographics, creating more demand for your products, etc. There are different promotional strategies for different purposes.

Explanation:

Answer:

Businesses should use different types of promotional strategies. Most businesses have different goals, and each strategy serves specific goals. There are different promotional strategies for different purposes. A company should research the best strategy for its target market and end goal.

Explanation:

I take an highschool business class!

Please don't copy word for word, this is just for inspo!

Which loan service is better a private loan or a federal loan?
A. Private
B. Federal

Answers

Federal? I think federal just seems better

PLS HELP FAST!! WILL GIVE THE BRAINLIEST!!! 25 POINTS!!! You have just read several theories about the causes of crime, and seen examples of how those theories might be used to prevent crime.
Which of these theories makes the most sense to you? Why?
Which of these theories made the least sense to you? Why?

Answers

The three major sociological theories which are the interactionist perspective, the conflict perspective, and the functionalist perspective. And each has its own distinct way of explaining various aspects of society and the human behavior within it.

Sociological theories on crime

There are many different sociological theories about crime, however, there are four primary perspectives about deviance: Structural Functionalism, Social Strain Typology, Conflict Theory, and Labeling Theory.

The least theory of crime

Social strain typology, developed by Robert K. Merton, is based upon two criteria: (1) a person's motivations or adherence to cultural goals; (2) a person's belief in how to attain her goals.

Therefore, it (social strain typology) is not within the confines of Criminal theories.

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kb uses water treatment recycling technologies due to lack of rain​

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Answer:

hello and i am only putting this because i have to complete this

An online photo printing company can temporarily lose its e-commerce ubiquity if.

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An online photo printing company can temporarily lose its e-commerce ubiquity if its website crashes as a result of a coding error or an attack by hackers.

What is E-Commerce Ubiquity?

This refers to the ability of a company to give its customers unrestricted access to its products and service at all times.

Hence, we can note that an online photo printing company can temporarily lose its e-commerce ubiquity if the customers are unable to get access to its service as a result of its website crash and customers lose accessibility.

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When costs to purchase inventory are rising, using LIFO leads to reporting ______ cost of goods sold and ______ net income than FIFO.

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When costs to purchase inventory are rising, using LIFO leads to reporting lower cost of goods sold and higher net income than FIFO.

LIFO and FIFO

LIFO means last in last out  while FIFO represent first in first out. In a situation were price of goods and service are falling using LIFO tend to assume that the newer and less expensive inventory is sold out first.

This tend to lead to lower cost of goods sold and higher net income.

Inconclusion when costs to purchase inventory are rising, using LIFO leads to reporting lower cost of goods sold and higher net income than FIFO.

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Amounts received in advance from customers for future products or services are typically recorded in a liability account called _______.

Answers

Answer:Unearned Revenues

Explanation:Unearned revenues, or deferred revenues, are amounts received in advance from customers for future products or services. Also arise with airline tickets sales, magazine subscriptions, construction projects, hotel reservations, gift cards sales, and custom orders.

Suppose a firm receives $10 for selling one additional unit of its product but that additional unit costs the firm $1 to produce. The producer surplus for the additional unit of product is

Answers

The producer surplus from selling the additional unit of the product given the selling price and the cost of production is $9.

What is producer surplus?

Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product. The least price the producer should be willing to collect is equal to the cost of production

Producer surplus = price – cost of proeuction

$10 - $1 = $9

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If the market price is above or equal to the average cost, but below the average cost the firm should keep producing in the run even though it does so at a(n)

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If the market price is above or equal to the average variable cost, but below the average total cost the firm should keep producing in the run even though it does so at a loss.

When should a firm shut down production?

A firm should continue production in the short run if the price is above the average variable cost even if price is below the average total cost. The short run is a period when at least one or more factors of production are fixed.

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Select the correct answer.
Ichika is writing a thank-you letter to an interviewer. Which statement should go in the beginning of Ichika's letter?
OA. In this letter, I am enclosing a sample of the index card layout that I mentioned during the interview.
OB.
I am very eager to join the Lexo Library and work with the head librarian and other team members.
Oc. Thank you for meeting me last Monday and considering me for the assistant librarian position.
OD. My knowledge of Indexing techniques will be a great asset for the new section your library plans to add.

Answers

Answer:

C. Thank you for meeting me last Monday and considering me for the assistant librarian position.

Explanation:

If the quantity supplied is greater than the quantity demanded, what must happen to the price in order to reach
equilibrium?

Answers

Answer:

the price of the product will decrease to meet equilibrium

Explanation:

in order to meet it, it has to decrease.

Answer:

The price of the product will decrease to meet equilibrium.

Explanation:

The price of the product will increase to meet equilibrium.

The price of the product will decrease to meet equilibrium.

Supply and demand must be raised.

Supply and demand must be lowered.

When profit targets are set by top managers, ______. Multiple select question. goals may be unrealistically high employee motivation will increase strategic direction may be insufficient too much slack may be allowed

Answers

When profit targets are set by top managers, goals may be unrealistically high and

too much slack may be allowed.

What is profits target?

A profit target is that amount or point where an investor or organization will get to and they would have harness or get their profits over an investment.

At this point, the organization may exit the business but the target must be realistic.

Therefore, When profit targets are set by top managers, goals may be unrealistically high and

too much slack may be allowed.

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An important feature of supply chain management is its application of sophisticated information technology that allows companies to.

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The most significant feature of supply chain management is its application of sophisticated information technology.

What is supply chain management?

Supply chain management is the administration of the movement of goods and services and it encompasses all procedures that turn raw materials into finished items.

The most significant feature of supply chain management is its application of sophisticated information technology allows companies to:

Share and operate systems for border processing, Transportation schedules, inventory, andFacility management.

It entails actively simplifying a company's inventory and supply processes in order to increase customer value and achieve a competitive edge in the industry.

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Why are most economies in the world today considered mixed economies?.

Answers

Answer:

Why are most economies in the world today considered mixed economies? Most economies are considered mixed because most have some portion of the means of production under government control. Most economic systems also have some element of the market or capitalism.

Explanation:

Have a great day!

#EquestrianLion

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Answers

Environmental sustainability is promoted by many companies around the globe, using the guidelines developed by the Global Reporting Initiative.

What is environmental sustainability?

Environmental sustainability refers to the capability of our environment to maintain all the biological systems and resources that support the living organisms on our Earth.

Environmental sustainability is important because of how much energy, food and human-made resources we use every day.

Hence, environmental sustainability is promoted using the guidelines developed by the Global Reporting Initiative.

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In which step of planning and executing an advertising campaign will a firm establish the metrics it will use to determine if the campaign is successful

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The step at which a firm will set the metrics that will be used to determine if the campaign is successful is at the advertising objectives.

What is an advertising campaign?

An advertising campaign is an outreach to prospective clients on different search engines or social media platforms showing a  simple piece of information about a company's product or service rendered.

The main purpose of setting an advertising objective is to see and determine if the purpose for the creation of such an advertisement is being met.

The purpose could be to

Generate new leads, orRetarget returning customers. etc.

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Because the government owns most of the urban land and uses it for fire, police, government buildings, parks, and roads, as well as holds zoning and tax violation rights over the rest, the government applies ____________ over urban land.

Answers

Based on the given scenario the government applies eminent domain over urban land.

What is eminent domain?

Eminent domain can be defined as the way in which government take over private property or private land  so as to turn those private property into public use.

Government can use eminent domain to collect a person or an individual property or land without the approval or consent of the owner of the property.

Inconclusion the government applies eminent domain over urban land.

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