Question

Answer the following questions. 1)What is the present equivalent of $18,140.62 to be received in 15...

Answer the following questions.

1)What is the present equivalent of $18,140.62 to be received in 15 years when the interest rate is 10% per year?

2)The Parkview Hospital is considering the purchase of a new autoclave. This equipment will cost $179,648. This asset will be depreciated using an MACRS (GDS) recovery period of three years.

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

1) Present Value = FV(P/F, i, 15)

                           = 18,140.62(P/F, 10%, 15)

                           = 18,140.62(0.2394)

                         = $4,342.86

Thus, the present equivalent is $4,342.86

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
XYZ manufacturing is considering the purchase of a new lunch press. This punch press will cost...
XYZ manufacturing is considering the purchase of a new lunch press. This punch press will cost $67,581. This asset will be depreciated using an MACRS (GDS) recovery period of seven years. The book value (BV) at the end of the second year ?
What is the present equivalent of $18,000 to be received in 15 years when the interest...
What is the present equivalent of $18,000 to be received in 15 years when the interest rate is 7% per year?
Freeman Engineering paid $46,000 for specialized equipment for use with their new global positioning system/geographic information...
Freeman Engineering paid $46,000 for specialized equipment for use with their new global positioning system/geographic information system (GPS/GIS). The equipment was depreciated over a 3-year recovery period using Modified Accelerated Cost Recovery System (MACRS) depreciation. The company sold the equipment after 2 years for $4,000 when it purchased an upgraded system. Determine the amount of the depreciation recapture or capital loss involved in selling the asset. The amount of capital loss is determined to be $
The Loore-Payne Medical Clinic will be purchasing a new computer network for the office. The equipment...
The Loore-Payne Medical Clinic will be purchasing a new computer network for the office. The equipment will cost $30000 to purchase and $20000 to install and check out. The equipment will last 9 years and is expected to have a salvage value of $1000 at that time. The equipment is depreciated using MACRS with a 5 year recovery period. Find the depreciation and book value each year for this equipment. Use Excel.
1. What is the present value of $3,570 to be received at the beginning of each...
1. What is the present value of $3,570 to be received at the beginning of each of 27 periods, discounted at 5% compound interest? 2. What is the future value of 15 deposits of $2,580 each made at the beginning of each period and compounded at 10%? 3. What is the present value of 9 receipts of $3,010 each received at the beginning of each period, discounted at 9% compounded interest?
Your firm is considering a project that would require purchasing $7.9 million worth of new equipment....
Your firm is considering a project that would require purchasing $7.9 million worth of new equipment. Determine the present value of the depreciation tax shield associated with this equipment if the? firm's tax rate is 33%?, the appropriate cost of capital is 8 %?, and the equipment can be? depreciated: a.? Straight-line over a? ten-year period, with the first deduction starting in one year. b.? Straight-line over a? five-year period, with the first deduction starting in one year. c. Using...
What is the present value of $ 4,000 received a. 12 years from today when the...
What is the present value of $ 4,000 received a. 12 years from today when the interest rate is 10 % per​ year? b. 24 years from today when the interest rate is 20 % per​ year? c. 6 years from today when the interest rate is 5 % per​ year?
Your firm is considering a project that would require purchasing $ 7.2 million worth of new...
Your firm is considering a project that would require purchasing $ 7.2 million worth of new equipment. Determine the present value of the depreciation tax shield associated with this equipment if the? firm's tax rate is 38 %?, the appropriate cost of capital is 8 %?, and the equipment can be? depreciated: please round all answers to 4 decimal points a.? Straight-line over a? ten-year period, with the first deduction starting in one year. b.? Straight-line over a? five-year period,...
Perform a present worth (PW)-based evaluation of the two alternatives below using a spreadsheet. The after-tax...
Perform a present worth (PW)-based evaluation of the two alternatives below using a spreadsheet. The after-tax minimum acceptable rate of return (MARR) is 8% per year, Modified Accelerated Cost Recovery System (MACRS) depreciation applies, and Te = 40%. The (GI - OE) estimate is made for the first 3 years; it is zero in year 4 when each asset is sold. Alternative X Y First Cost, $ –8,000 –13,000 Salvage Value, Year 4, $ 0 2,000 GI-OE, $ per Year...
A firm is planning to purchase a new equipment and answer the following questions according to...
A firm is planning to purchase a new equipment and answer the following questions according to what you have learned. Data are shown below: The new equipment will cost $7,500. And it would be depreciated on a straight-line basis over the project's 5-year life (depreciation rate is 20% per year) and would require additional $200 net operating working capital that would be recovered at the end of the project's life. There is no salvage value. After purchasing this equipment, firm...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT